Why Hertz Stock Popped Over 30% Wednesday
Shares of Hertz (NYSE: HTZ), a vehicle rental company working through the bankruptcy process, popped more than 30% higher early Wednesday morning before giving back some of the gains, as the company agreed to pay lenders $650 million.
The agreement for Hertz to pay lenders $650 million will buy the company some time, as it will end the fight over how much the rental company must pay in 2020. Hertz will ask a federal bankruptcy judge to approve the settlement on July 24, 2020. However, the looming decisions regarding how the rental company will shrink the size of its fleet, attempt to pay back lenders, and emerge as a new company attempting to continue business in a postpandemic world will still be there when the calendar turns over to the new year.
Image source: Getty Images.
Source Fool.com
