After filing for bankruptcy in May, Hertz has been given a lifeline with $1.65 billion in debtor-in-possession (DIP) financing.

The rental car company’s share price soared nearly 130% on Friday with news of the financing deal. Hertz has filed for approval of the DIP financing in a Delaware bankruptcy court, with a hearing slated for Oct. 29.

The financing will help Hertz move through the Chapter 11 process with up to $1 billion dedicated to equity for vehicle acquisition in the U.S. and Canada and up to $800 million for working capital and general corporate purposes.

The financing was provided by some of Hertz’s creditors and is subject to approval by the bankruptcy court, the company said.

Hertz found itself in Chapter 11 bankruptcy as the coronavirus bite down on the travel industry. As business and leisure travelers stopped traveling because of the pandemic, Hertz’s sales plummeted, causing the company to seek bankruptcy protection.

Hertz President and CEO Paul Stone said: “This new financing will provide additional financial flexibility as we continue to navigate the pandemic's effects on the travel industry and take steps to best position our business for the future. We are pleased with the strong interest from our pre-petition first-lien lenders and appreciate their support of Hertz and our future opportunities as a rental car leader.”

Shares of Hertz were trading at $2.3591 as of 1:22 p.m. EDT, up $1.3291 or $129.0388.

hertz A sign is seen at a Hertz Global Holdings car rental branch Aug. 27, 2012, in Los Angeles. Photo: Kevork Djansezian/Getty Images