Bankrupt car rental firm Hertz secures $1.65 billion in financing, shares soar

FILE PHOTO: A Hertz Global Holdings Inc. shuttle bus is seen at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., May 23, 2020. REUTERS/Patrick T. Fallon

(Reuters) - Bankrupt car rental company Hertz Global Holdings Inc said on Friday it had lined up $1.65 billion in debtor-in-possession financing, sending its shares soaring.

Hertz plans to invest up to $1 billion in vehicle acquisitions in the United States and Canada, and up to $800 million for working capital and general corporate purposes.

The financing will be provided by some of the company’s creditors, Hertz said. It has filed a motion for approval of the financing by the U.S. Bankruptcy Court for the District of Delaware.

The more than a century old company’s shares jumped 96% to $2.02 in premarket trading.

Hertz filed for bankruptcy protection on May 22 after its business was decimated during the coronavirus pandemic and talks with creditors failed to result in much-needed relief.

Reporting by Shreyasee Raj in Bengaluru;Editing by Maju Samuel