The bankruptcy court overseeing Hertz Global Holdings Chapter 11 proceedings has approved Hertz’s reorganization plan, the company reported on June 10. The court's approval clears the way for Hertz to emerge from Chapter 11 by the end of June.

According to Hertz, creditors will be paid in full while existing shareholders will receive more than $1 billion in value. The plan will erase over $5 billion in debt and provide over $2.2 billion in liquidity.

Hertz will emerge with $2.8 billion in credit and an approximately $7 billion of asset-backed vehicle financing facility.

“As a result of its restructuring efforts, Hertz will emerge from Chapter 11 with a substantially stronger balance sheet and greater financial flexibility than it had prior to the onset of the COVID-19 pandemic,” Hertz said in a statement.

"With the Court's approval of our Plan today and a committed new investor group, we are poised to exit Chapter 11 by the end of this month as a well-capitalized and even more competitive company, with the flexibility and resources to pursue exciting new growth opportunities,” said Paul Stone, Hertz's president and CEO.

U.S. Bankruptcy Judge Mary Walrath said in hearing Thursday that that payouts to equity are virtually unheard of in Chapter 11. The case “surpasses any result that I’ve seen in any Chapter 11 case that I’ve faced in my 20-plus years,” Walrath said, according to a Bloomberg report.