Hertz Global Holdings (HTZGQ) Stock Soars To $9 Mark: Still a Good Buy?
Over the past weeks, car rental company Hertz Global Holdings (OTCMKTS:HTZGQ) has been in major focus among many investors and managed to record considerable gains.
The company had declared bankruptcy last year due but things have turned around quite dramatically in recent times. Hertz not only found a consortium of investors following a bidding war recently but it is expected to emerge from bankruptcy on June 30, 2021. In the lead-up to the crucial day, investors seemed to have decided to pile on the Hertz stock in a big way. On Monday, the stock was on the move again and ended the day with gains of as much as 31%.
In this situation, it is quite likely that the stock is going to stay in sharp focus over the coming days. Not too long ago the company had announced that the bankruptcy court accepted its restructuring plan and went on to state that it would b coming out of bankruptcy on June 30.
The most important thing to keep in mind with regards to Hertz is that the company had to declare bankruptcy as its car rental business collapsed due to the effects of the coronavirus pandemic last year. In its reorganization plant, the company has decided to wipe out debts to the tune of $5 billion straightaway. This move will give the company $2.2 billion in the form of liquidity. Hertz has stated that the company’s balance sheet is going to be strengthened due to the restructuring.
Hertz Global Holdings (HTZGQ) Stock is Back In Action: A Good Opportunity?
Car rental company Hertz Global Holdings Inc (OTCMKTS:HTZGQ) was in considerable focus in the markets last week after the company announced that its plan of reorganization had been accepted by the Bankruptcy Court.
That was the main trigger that saw the stock deliver gains of as much as 10% last week. However, in this regard, it is also necessary to point out that the Hertz Global stock has performed well since April and up until now it has gained as much as 500%. The reorganization plan from Hertz has already been approved by as many as 97% of all its shareholders.
It is a major development for the company in a number of ways. The approval from the Bankruptcy Court has also paved the way for Hertz Global to come out of bankruptcy by the end of this month. More importantly, the restructuring of the company is also going to help in strengthening the balance sheet considerably.
In addition to that, the company is also going to have much more financial freedom than it had in the past. It is necessary for investors to keep in mind that Hertz Global’s finances had been in tatters after its business was wrecked by the coronavirus pandemic. That eventually forced the company to file for bankruptcy.
As per the provisions of the reorganization plan from Hertz Global, the company is going to pay off debts to the tune of $5 billion and that is also going to include the entirety of its European corporate debt. In addition to that, the plan is also going to provide $2.2 billion in the form of global liquidity.
The company has been in major focus for the past weeks since it had been the subject of a bidding war between two groups of investors who were looking to bring it out of bankruptcy. It was finally resolved last month and it now appears that Hertz Global is going full tilt towards a new chapter.