Hertz Global (HTZ) will not be forced to redeem warrants it issued almost five years ago after a judge in Delaware on Friday threw out a lawsuit, ruling the rental car company's bankruptcy and subsequent funding efforts could not be considered a reorganization as defined in the warrant agreement.

Hertz issued more than 82.7 million of the 30-year warrants in June 2021 as it worked to emerge from bankruptcy protection amid the COVID-19 pandemic.

Plaintiff Discovery Global Beacon Partners, a hedge fund organized in the Cayman Islands, sued Hertz in Delaware Chancery court, contending the company's bankruptcy petition and June 2021 emergence met the definition of a reorganization, requiring the company to redeem the nearly 9.2 million warrants Discovery held at $13.80 per share.

Judge Eric Davis, however, rejected Discovery's argument, stating in his order that absent some ambiguity in the warrant agreement, "Delaware courts will not distort or twist contract language under the guise of construing it."