Judge Rejects Ahern Rentals' Plan for Reorganization

U.S. Bankruptcy Court judge advised Ahern attorney to 'talk with your clients, very seriously' about revising Ahern's plan to keep his 97% stake while forcing losses on lenders

A bankruptcy judge placed a potentially formidable obstacle in the path of Don Ahern's attempt to pull Ahern Rentals Inc. out of Chapter 11 proceedings with his dominant ownership position intact.

At a hearing in Reno, U.S. Bankruptcy Court Judge Bruce Beesley said his preliminary understanding of the company's reorganization plan led him to think it could never be approved because it allows Ahern to keep his 97-percent stake while forcing losses on lenders. As a result, he advised an Ahern Rentals attorney to "talk with your clients, very seriously" about revising their position.

For more about Ahern Rentals' bankruptcy reorganization...