Ahern Rentals, Inc. Announces That Its Plan of Reorganization Was Confirmed Today by the U.S. Bankruptcy Court for the District of Nevada
Ahern Rentals, Inc. announced that its Second Amended Plan of Reorganization, as amended, was confirmed today by the U.S. Bankruptcy Court for the District of Nevada. The plan confirmation paves the way for the Company’s emergence from Chapter 11 bankruptcy later this month.
Ahern sought Chapter 11 protection on December 22, 2011, after it was unable to extend the maturity of its revolving credit facility. During the case, the Company continued its business operations and substantially improved its financial condition while at the same time addressing the maturity of its term loan and second lien notes. The second lien noteholders agreed to support the plan and will receive the face amount of their loans plus accrued prepetition interest. Other creditors will receive 100% of their allowed claims under the plan. And Ahern’s two owners (Don F. Ahern and John Paul Ahern, Jr.) will retain 100% of the capital stock in the reorganized entity.
"Our operating performance continues to improve considerably due to, among other things, significant improvement in the global economy and the resulting recovery in the equipment rental market," said Don F. Ahern, President and CEO of Ahern Rentals.
"Ahern Rentals has made very significant progress during this process," said Ahern. "We thank our customers and our employees, suppliers and business partners, whose loyalty has been instrumental in keeping Ahern Rentals competitive during the past 60 years. Their dedication has allowed the Company to continue providing premium equipment rental services. Today, Ahern Rentals has built a strong foundation for continued growth, and we look forward to our final emergence from bankruptcy."
About Ahern Rentals, Inc.
Ahern Rentals is the sixth largest and the largest independently owned equipment rental company in the U.S. with 75 branches in 22 states. Through this network of equipment rental locations, it rents a full range of construction equipment, sells used rental equipment, new equipment, parts, supplies and related merchandise, and provides maintenance, repair and other services that supplement its rental activities. The types of equipment Ahern rents range from a fleet of high reach equipment and earth engaging units to hand tools. For more information about Ahern Rentals, visit http://www.ahern.com.
The Seaport Group and Oppenheimer & Co. served as Ahern's Financial and Restructuring Advisors in connection with its Chapter 11 Reorganization. Gordon Silver and DLA Piper (US) LLP served as Legal Advisors.
Ahern Rentals, Inc.
Howard Brown, 702-362-0623