The Hertz Global Holdings (OTCMKTS:HTZGQ) stock has been in the middle of a major rally for the better part of six weeks and during the period it has clocked gains of 100%. The stock continued to soar as a bidding war intensified in order to take the car rental company out of bankruptcy.
Last month the whole thing finally came to an end after Hertz chose the proposal from the consortium led by Apollo, Certares and Knighthead to take it out of Chapter 11.
This group of investors made a proposal that was worth as much as $6 billion. The investment is going to be funded by way of direct stock investment, common stock offering to stakeholders, and through the issuance of preferred stock. This plan is designed to help Hertz come out of bankruptcy this month. The coronavirus pandemic and the associated travel restrictions had hit the company hard. It had also led to the ballooning of its existing debts.