Hertz Global Holdings said Friday that its common stock will start trading exclusively on the over-the-counter market after the auto-rental giant filed under the bankruptcy laws last spring.
The company said in a statement that stock quotations will be available on the OTC Bulletin Board, or pink sheets, under the ticker symbol HTZGQ.
Hertz was devastated by the coronavirus pandemic shutdown, which severely curtailed travel in an effort to stem the spread of the potentially deadly disease.
Hertz said that the New York Stock Exchange had determined that the company was no longer suitable for listing after the company filed for bankruptcy on May 22 and after the exchange reviewed Hertz's appeal.
The stock no longer trades on the NYSE, effective Friday.
Earlier this month, Hertz said it had obtained $1.65 billion in financing to help it emerge from bankruptcy proceedings.
The company said in a statement that it had secured commitments for debtor-in-possession financing totaling $1.65 billion. It filed a motion asking the U.S. Bankruptcy Court in Delaware to approve the financing.
Hertz soon plans to line up a $4 billion financing package to refresh its vehicle fleet on top of the $1.65 billion, The Wall Street Journal reported.
The company on Thursday had received permission from the bankruptcy court to begin tapping a $1.65 billion loan to help it operate through 2021, the Journal said. Some of that money could be used to buy cars, with the rest earmarked for other purposes.
Hertz has been liquidating parts of its fleet, cutting the number of vehicles it leases from banks and bondholders to adapt to slumping demand during the coronavirus pandemic.
The company is also in the market for new models as aging vehicles are sold off.
During a court hearing Thursday, a lawyer for Hertz, Tom Lauria, said, “We need to start ordering new vehicles.”
The $1.65 billion bankruptcy loan will help, but Hertz needs more financing from asset-backed securities, Lauria said. Hertz hopes to get commitments for the additional $4 billion in asset-backed financing in coming days, the Journal quoted the attorney as saying.
The majority of stocks sold over-the-counter are so-called penny stocks, trading for less than $5 per share.
But a number of companies not considered penny stocks choose to sell their shares through the over-the-counter network to keep share distribution activity inexpensive.