Ahern Creditors Present New Plan for Reorganization

A group of junior lenders have presented their own plan for reorganizing $379.2 million of debt in the bankruptcy case of Las Vegas-based Ahern Rentals. The plan calls for the investment group, made up of six investment funds, to jointly take over ownership of the company in lieu of their $267.7 million share of the debt. The group then would repay all other debt holders.

If Don Ahern and his brother John Paul Ahern Jr., who currently own 97% and 3% of the company respectively, do not oppose the proposal, they would receive warrants that could eventually be converted into shares of the company.

The bankruptcy court will hold a hearing on March 8 to consider this latest proposal, as well as Ahern’s previously announced plan in which the company would pay back its debts with more generous terms than originally agreed upon - while not giving up any equity in the company.