Ahern Rentals' Second Amended Plan of Reorganization, as amended, was confirmed by the U.S. Bankruptcy Court for the District of Nevada, according to reports. 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 Ahern, president and CEO of Ahern Rentals.