Hertz said in the filing that the net proceeds would be used for general working capital purposes.
Photo courtesy of Hertz.
The U.S. Bankruptcy Court for the District of Delaware granted Hertz approval on Friday to sell up to $1 billion in stock.
Hertz said in the filing that the net proceeds would be used for general working capital purposes.
“The recent market prices of and the trading volumes in Hertz’s common stock potentially present a unique opportunity for the debtors to raise capital on terms that are far superior to any debtor-in-possession financing,” Hertz said in the filing.
At the time of commencing bankruptcy, Hertz had close to $20 billion in debt.
Hertz shares have skyrocketed about 300% since May 26, the first day of trading after it declared bankruptcy. Hertz shares closed Friday up 37% to $2.83 a share.
The move comes as Hertz fights to keep its stock from being delisted on the New York Stock Exchange, which sent a letter to Hertz on May 26 regarding commencing proceedings to delist.
Hertz is requesting a hearing before the NYSE to contest the potential delisting.