Ahern Rentals Seeks Bankruptcy Court Approval for Exit Financing

Las Vegas-based Ahern Rentals has asked the Nevada bankruptcy court to approve a $415-million financing package from Jeffries Finance that it plans to use to fund its Chapter 11 exit. The papers were filed with the U.S. Bankruptcy Court for the District of Nevada on May 19.

The current owners' plan will be judged alongside a competing proposal put forward by a group of its noteholders, who want to gain control over the company to satisfy $267 million of debt. The company’s plan would preserve Ahern’s 97-percent ownership stake in exchange for a payment plan it has proposed.

Ahern has not disclosed the finer details or costs of the Jeffries financing. The decision on which of the two plans will go forward is expected in early June.