Hertz Global Holdings has successfully completed its chapter 11 restructuring process.

The car rental business says it has emerged as a “financially and operationally stronger” company that is “well-positioned for the future”.

With over $5.9 billion of new equity capital being provided by a new investor group, led by Knighthead Capital Management, Certares Opportunities and certain funds managed by affiliates of Apollo Capital Management, Hertz has reduced its corporate debt by nearly 80 per cent.

The company has also significantly enhanced its liquidity to fund operations and future growth.

Specifically, Hertz has eliminated nearly $5 billion of debt, including all of Hertz Europe’s corporate debt.

In addition, Hertz has emerged with a new $2.8 billion exit credit facility (including an undrawn $1.3 billion revolving credit facility) and a $7 billion asset-backed vehicle financing facility, each having terms the company views as extremely favourable.

Henry Keizer, chairman of Hertz outgoing board, said: “Faced with the epic and unprecedented challenges presented by the Covid-19 pandemic, and unfazed by early leadership changes, we stayed focused on stabilising the business and seizing opportunities to mitigate losses and create value for our stakeholders.

“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.”

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

Among these actions, Hertz launched a cost reduction program that is generating significant savings, right-sized its fleet across both its United States and international businesses, cut its location footprint and completed the sale of its Donlen fleet leasing business for $891 million in cash.

Paul Stone, Hertz chief executive, said: “Today marks a significant milestone in Hertz’s 103-year history.

“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.

“Both in the United States and around the world, we are poised to capitalise on our industry leadership, deep operational expertise and iconic global brand.”

Hertz filed for chapter 11 for its United States operations on May last year.