Hertz soared on Friday after it said in a regulatory filing that it entered a letter of commitment for a potential debtor-in-possession financing deal of up to $1.65 billion.
Shares of the rental-car company were up as much as 177% in Friday trades to $2.86.
The financing deal is subject to the approval of bankruptcy court, which is expected to hear the matter on or around October 29.
Hertz made waves with investors over the summer after it was bid up more than 1,000% despite being in the throes of bankruptcy proceedings.
If the financing deal is approved, up to $1 billion of the proceeds could be used for new interim fleet financing.
The potential financing is with holders of a majority in aggregate outstanding amount of its prepetition first-lien debt, according to the regulatory filing.
The DIP Facility matures on December 31, 2021, and has limited covenants and events of default, including one milestone requiring the filing of a plan by August 1.
{{}}
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.