HTZGQ Stock: The Big Bankruptcy News That Has Hertz Shares Rocketing

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Hertz (OTCMKTS:HTZGQ) stock is soaring today as it finally sees an end to the bankruptcy tunnel.

Image of Hertz (HTZ) branded store comprised of grey materials
Source: Eric Glenn/Shutterstock.com

The Florida-based car rental company is up huge on news that it is selecting and approving a revised proposal by a handful of capital management companies for lifting it out of Chapter 11 bankruptcy. Knighthead, Certares and Apollo are the trio of firms behind the proposal.

The exit proposal, which beats out the proposal of rival Centerbridge Partners, is a $6 billion plan. Funding for the bid will be through direct stock investments, new preferred stock issuance, and an offering of common stock to existing shareholders. The plan will ultimately allow Hertz to exit bankruptcy in June.

Hertz has been hit hard by the pandemic, with travel at an all-time low. Already in debt before restrictions were even put in place, the crushing Chapter 11 filing seemed to be a knockout blow. Now, Knighthead, Certares and Apollo will be rekindling the company under new control, and with a clean financial slate.

HTZGQ Stock Up on News of High Shareholder Payout

Most notably for investors, the plan includes a distribution of about $8 a share to current shareholders. Some of the distribution will be in cash, and the rest will come in the form of reorganized equities and warrants. And as such, investors are getting their hands on GTZGQ stock by the fistful.

With Hertz experiencing some steep ups-and-downs through the pandemic, the news is a welcome shift. The initial proposal from Knighthead and company stirred up high trading volume, with more than 9 million shares changing hands. But now, with the proposal becoming a reality, today’s volume is dwarfing that number.

HTZGQ trading volume is nearing 50 million before Wednesday’s session closes. That’s a stark contrast from the 8 million average volume. Also, valuation is skyrocketing on the news. Shares are up by over 58% on the day.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2021/05/htzgq-stock-the-big-bankruptcy-news-that-has-hertz-shares-rocketing/.

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