It might be hard to begrudge Hertz Global Holdings executives and new board members if they shot off some fireworks ahead of the Fourth of July holiday.

This week, Hertz announced that it has successfully completed its Chapter 11 restructuring process and has emerged as a “financially and operationally stronger company that is well-positioned for the future,” as a new eight-member board takes over leadership.

The company said its reorganization plan was confirmed by the federal bankruptcy court on June 10, 2021. In doing so, Hertz highlighted in a news release that Judge Mary Walrath described the outcome as a “fantastic result” that “surpasses any result that I’ve seen in any Chapter 11 case that I’ve faced in my 20-plus years.”

With more than $5.9 billion of new equity capital being provided by Hertz’s new investor group led by Knighthead Capital Management, Certares Opportunities and certain funds managed by affiliates of Apollo Capital Management, Hertz highlighted that it has reduced its corporate debt by nearly 80% and significantly enhanced its liquidity to fund operations and future growth.

Specifically, Hertz said it has eliminated nearly $5.0 billion of debt, including all of Hertz Europe’s corporate debt.

In addition, Hertz said it has emerged with a new $2.8 billion exit credit facility (including an undrawn $1.3 billion revolving credit facility) and a $7.0 billion asset-backed vehicle financing facility, each having terms the company views as “extremely favorable.”

The aggregate interest rate on the company’s new ABS financing is less than 2.0%, according to the news release.

Henry Keizer, chairman of Hertz’s outgoing board of directors, offered this assessment of the rental-car company’s journey to this point.

“Faced with the epic and unprecedented challenges presented by the COVID-19 pandemic, and unfazed by early leadership changes, we stayed focused on stabilizing the business and seizing opportunities to mitigate losses and create value for our stakeholders,” Keizer said in the news release.

“When the economy began to show signs of recovery earlier this year, we were perfectly positioned to drive a competitive process that would maximize recoveries. The result — paying our nearly $19 billion of creditors in full and returning substantial value to our shareholders — is remarkable,” he went on to say.

In tandem with its financial restructuring, Hertz recapped that it also executed on a series of operational initiatives to create a “more focused and profitable enterprise.”

Among these actions, Hertz noted that it:

— Launched a cost-reduction program that is generating significant savings

— Right-sized its fleet across both its U.S. and international businesses

— Optimized its location footprint

— Negotiated cost reductions and concessions at certain airport locations

— Completed the sale of its Donlen fleet leasing business for $891 million in cash.

In addition, Hertz went on to mention that it focused on meeting changing demand through its portfolio of neighborhood rental locations as a complement to its airport business.

These efforts, combined with a sharp increase in car rentals in the U.S. and the continued strength in used-vehicle sales, are putting the company on track for strong financial results in 2021, according to Hertz president and chief executive officer Paul Stone.

“Today marks a significant milestone in Hertz’s 103-year history,” Stone said in the news release distributed on Wednesday. “Through the relentless efforts of our board and team, we are moving forward in an incredibly strong position with an exciting road ahead of us.

“Now with a solid financial foundation, a leaner, more efficient operating model, and ample liquidity to invest in our business, Hertz has outstanding potential to drive long-term profitable growth,” he continued. “Both in the U.S. and around the world, we are poised to capitalize on our industry leadership, deep operational expertise and iconic global brand.

“I am tremendously proud of all we have accomplished and confident that this is only the beginning in delivering even greater value to our stakeholders,” Stone went on to say. “Thank you to the Hertz team around the world and board of directors, to our new investor group, who bring extensive industry experience, and to our customers, franchisees, partners and shareholders for your confidence and support during this process.

“We look forward to a bright future as a vibrant part of the rebounding travel industry and as a trusted partner for our customers’ mobility needs,” he added.

Hertz filed for Chapter 11 for its U.S. operations on May 22, 2020 following the onset of the COVID-19 pandemic, which had a severe and dramatic effect on travel demand.

Hertz pointed out that its principal international operating regions including Europe, Australia and New Zealand were not included in the U.S. Chapter 11 proceedings.

Following its successful restructuring process, Hertz said its creditors will receive payment in cash in full and existing shareholders will receive more than $1 billion of value.

The company indicated shares of Hertz common stock will continue to be publicly traded on the over-the-counter (OTC) market, until such time as the company relists on a national securities exchange.

Effective Thursday, the new ticker symbols are HTZZ for Hertz common stock and HTZZW for warrants.

White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor.

For court documents or filings, visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421.

Hertz forms new board of directors

Now with the bankruptcy exit completed, Hertz also highlighted its new eight-member board of directors with up to three additional directors to be named in the future. Along with Stone, the group currently includes:

— Certares founder Michael Gregory O’Hara, who was tapped as chairperson

— Knighthead Capital co-founder Thomas Wagner, who was chosen as vice chairperson

— Certares senior managing director Colin Farmer

— Knighthead Partner Andrew Shannahan

— Apollo partner Christopher Lahoud

— TPG Capital senior advisor and former CEO of Ford Mark Fields

 —Previous Hertz board member Vincent Intrieri

“We are excited to welcome our new board members and benefit from their collective expertise, leadership and oversight at this pivotal time for Hertz and the travel industry,” Stone said in a separate news release. “These executives bring extensive financial, operational and market experience that will be invaluable in the next chapter for Hertz.

“I also want to express our company’s appreciation to our retiring board members for their service and tireless efforts, particularly throughout the past year and a half of the pandemic and our successful restructuring,” Stone added.