Shares of Hertz Global Holdings Inc. CNTB,
more than twice in high pre-trade volume on Friday after a bankrupt car rental company said it had secured $ 1.65 billion in debtor financing (DIP). The company said up to $ 1 billion in DIP could be used to provide equity for vehicle purchases in the United States and Canada, and up to $ 800 million could be used for working capital and general corporate purposes. The financing is subject to approval by the bankruptcy court. Shares rose 1
05% to release at the highest price seen during regular sessions since June. Trading volume swelled to 58.2 million shares, making it the most active stock in the preliminary market and already well above the full-day average of about 8.1 million shares. “This new funding will provide additional financial flexibility as we continue to focus on the effects of the pandemic on the tourism industry and take steps to better position our business in the future,” said CEO Paul Stone. Shares fell 93.5% year-to-date to Thursday, while shares of rival Avis Budget Group Inc. CAR,
have fallen by 5.1% and the S&P 500 SPX,
has gained 7.8%.