United States Bankruptcy Court for the Southern District of New York has confirmed Neff Rental Inc.'s chapter 11 plan, which is sponsored by private investment funds managed by Wayzata Investment Partners.
With court confirmation of the plan, Neff is set to emerge from chapter 11 in the next few weeks, having reduced its debt load by more than $400 million. As part of the plan, Wayzata has committed to provide approximately $181.6 million in equity financing to Neff. In addition, Neff's existing lenders will provide a $175 million revolving credit facility to Neff. In connection with the plan, Neff will transfer substantially all of its business and operations to Reorganized Neff, L.L.C., which will own and manage the Neff operations going forward.
"I am pleased that we were able to complete our prearranged reorganization in less than five months. I look forward to working with Wayzata and all of our stakeholders to build long term value for Neff and its stakeholders," said Graham Hood, Neff's chief executive officer. "As a result of the restructuring, Neff will be able to recapitalize its business and provide for future capital needs, while preserving approximately 900 jobs," continued Hood.
Neff was able to resolve all of the objections to the plan on a consensual basis, and all classes of creditors entitled to vote voted in favor of the plan.
Neff was advised by AlixPartners LLP, Kirkland & Ellis LLP and Miller Buckfire & Co. LLC. Wayzata was advised by Houlihan Lokey Howard & Zukin and Stroock & Stroock & Lavan LLP.
Neff provides rental equipment to customers operating in the construction, industrial, and governmental sectors. The company ranks among the 20 largest equipment rental companies in the U.S. For more information, visit http://www.neffrental.com/home.aspx.