On June 6, the U.S. Bankruptcy Court for the District of Nevada confirmed the Second Amended Plan of Reorganization, as amended, presented by Ahern Rentals, Las Vegas, and on June 24 the company emerged from its Chapter 11 case with its two owners — Don Ahern and John Paul Ahern Jr. — retaining 100 percent of the capital stock in the reorganized entity.
Ahern Rentals sought Chapter 11 protection on Dec. 22, 2011, after it was unable to extend the maturity of its revolving credit facility. During the case, the company implemented a business recovery strategy, which consisted of strategically opening multiple branches in new geographic markets and redeploying its equipment rental fleet to these new markets, which resulted in substantial improvement in its business operations and financial condition.
In a case that lasted about 1½ years, included numerous extensions to Ahern Rentals’ deadline to present a reorganization plan and the court’s rejection of the company’s initial plan, Ahern was able to present a new plan that the court and second lien note holders — the group of lenders owed the greatest amount — agreed to support. That group of note holders had earlier offered a competing plan under which the group would have taken equity in the company in exchange for their debt and paid off other debt holders with cash.
In the court-accepted plan, the second lien holders received par plus pre-petition interest, as well as court costs, and all other creditors received 100 percent of their allowed claims. With the company’s emergence from bankruptcy, Don Ahern, CEO, says the rental company is positioned well from both an operational standpoint and capital structure to continue growing.
“We thank our customers and our employees, suppliers and business partners, whose loyalty during this process has been instrumental in our continued financial success and our success in emerging from bankruptcy,” Ahern said. “We also want to thank our financial advisors, The Seaport Group and Oppenheimer & Co., for developing and helping us implement the plan that allowed us to successfully exit bankruptcy, and our legal counsel, Stoel Rives, who have advised us on our financing issues since 2004, and Gordon Silver, who served as our legal advisors.”