Shares of Hertz surged Friday morning on uncommon plans for the bankrupt firm to promote as much as $1 billion in shares, a final ditch effort for it to boost capital though the value of the stock might get worn out.Throughout premarket buying and selling, shares had been up greater than 70% to $3.56 earlier than leveling off to open at $3.21 – the most recent speculative surge because the firm filed for chapter on May 22. Shares had been decrease however nonetheless up about 35% in buying and selling to $2.78.The automobile rental agency in a public submitting Thursday requested the chapter courtroom to probably promote 246.eight million unissued shares to Jefferies LLC.”The latest market costs of and the buying and selling volumes in Hertz’s widespread stock probably current a novel alternative for the debtors to boost capital on phrases which are far superior to any debtor-in-possession financing,” the corporate mentioned within the submitting, which the courtroom is but to decide concerning.Hertz mentioned the web proceeds can be used for common working capital functions. The submitting was on an “emergency foundation given the unstable state of buying and selling in Hertz’s stock.”Melanie Cyganowski, a former chapter decide for the Japanese District of New York who’s now with the Otterbourg legislation agency, cannot recall an organization resembling Hertz making an attempt to take such actions throughout her 14 years on the bench or since then.”They’re making an attempt to make the most of market alternatives, which is uncommon as a result of I do not keep in mind that many debtor stock costs that surged at the least to start with of a case,” she informed CNBC. “If you happen to’re shopping for this stock, you are shopping for it as a day dealer … you are not shopping for it since you’re investing within the debtor.” The stock additionally may very well be delisted. Hertz in a public submitting with the Securities and Change Fee this week mentioned that it has appealed a delisting request by the New York Stock Change.If Hertz is allowed to do promote the shares, Cyganowski mentioned future bankrupt corporations may take a look at doing the identical. However due to this occurring beneath such “uncommon” circumstances, she does not imagine the case will set any important precedent.Steven L. Schwarcz, a professor of legislation and enterprise at Duke College, additionally has by no means heard of an organization making an attempt to promote shares like this except it is a part of a plan of reorganization beneath chapter. Doing so, he mentioned, might complicate issues. The controversy about bypassing a reorganization plan has beforehand targeted on main asset gross sales, he wrote in an e-mail to CNBC. “This could be a brand new wrinkle on that.”CNBC’s Jim Cramer questioned the corporate’s plans Friday morning, relating it to a circus.”The query is did P.T. Barnum grow to be the CEO?,” Cramer mentioned throughout CNBC’s “Squawk Field.” “No, it is another person. How do you want that? Possibly they ought to usher in P.T. Barnum as a result of that is precisely what it takes to have the heart to have the ability to try this providing. I imply there is a risk that it is worth nothing.”The one manner it really works for widespread shareholders of Hertz is that if there’s one way or the other a sudden surge of rental and the corporate undoes the chapter, in response to Cramer. The transfer, he mentioned, is a optimistic for big bondholders as a result of there’s more cash coming in.Cramer has cautioned buyers, notably new merchants, in regards to the danger of shopping for the stock of corporations that filed for chapter resembling Hertz.Cramer mentioned it’s “extremely unlikely” that Hertz, as a enterprise, goes away in its chapter. However the firm’s bondholders would be the first in line to get a chunk of the post-bankruptcy Hertz. Homeowners of the widespread stock, alternatively, “are on the backside of the chapter pecking order,” Cramer mentioned earlier this week.–CNBC’s Kevin Stankiewicz contributed to this report.