Hertz share skyrocket by more than 50% after deciding on $6 million bid

Shares of car rental company Hertz Global spiked by more than 50% on Wednesday after it chose a $6 billion turnaround bid that gives out a rare payout to shareholders for a company in Chapter 11 bankruptcy, reported CNBC.

Investment firms Knighthead Capital Management and Certares Management out of the others won the offer to acquire Hertz in its bankruptcy reorganization, which the company believes to leave by the end of June.

The Wall Street Journal, the first to give out the auction results, reported that the winning bid will provide present shareholders around $8 a share, an unusual payout in any case of corporate bankruptcy. Some of the amount would be paid in cash with warrants and reorganized equity also accounting for some of the value.

Apollo Global Management and a bulk of other existing shareholders will come with Knighthead and Cetares in taking over Hertz that filed for bankruptcy last May.