Two investment firms will buy a majority stake in Hertz Global Holdings for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer, the car rental company said in a filing on Tuesday.

Under the proposed investment, Knighthead Capital Management and Certares Opportunities will buy up to 100% of Hertz's shares, with the funds expected to finance its U.S. vehicle fleet and slash corporate debt.

"We've been ... repositioning our business as we prepare for increased travel demand as the pandemic subsides," Chief Executive Paul Stone said.

Hertz filed for bankruptcy protection in May after its business was decimated by the COVID-19 pandemic and talks with creditors failed to result in much-needed relief.

The company said on Tuesday it filed a proposed plan of reorganization with the U.S. bankruptcy court for the district of Delaware, which is expected to approve the terms of the proposed investment at a hearing on April 16.

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