Shares in Hertz Global Holdings Inc. HTZ,
more than doubled compared to the large volume of trade in the market on Friday after the bankrupt rental car company said it secured $ 1.65 billion in debtor-in-possession (DIP) financing. The company said up to $ 1 billion of DIP could be used to provide equity for vehicle purchases in the U.S. and Canada, and up to $ 800 million could be used for working capital and general business purposes. The financing is conditional on bankruptcy law approval. The stock rose 1
05% to put it on the right track to open at the highest price seen during normal session hours since June. Trading volume swelled to 58.2 million shares, making it the most active stock in the consumer market and already well above the full-time average of around 8.1 million shares. “This new financing will provide additional financial flexibility as we continue to navigate the effects of the pandemic on the travel industry and take steps to position our business in the best possible way for the future,” said CEO Paul Stone. The stock has fallen 93.5% year to date until Thursday, while the shares of rival Avis Budget Group Inc. CAR,
has enjoyed 5.1%, and the S&P 500 SPX,
has received 7.8%.