Bankruptcy Court Judge Accepts Competing Plans in Ahern Rentals Case

U.S. Bankruptcy Court Judge Bruce Beesley accepted Friday the disclosure statements submitted by both Ahern Rentals and its junior lenders, the Las Vegas News Tribune reported. The court schedule calls for voting on the plans in May, with a court date in June that could determine which plan is accepted.

The lenders’ plan proposes taking ownership of the company, while Ahern Rentals’ proposed plan would have equity owners Don and John Paul Ahern keeping full ownership and paying creditors a combination of cash and new notes.

A revised plan recently submitted by Ahern is viewed as more acceptable to lenders since it involves paying back senior loans completely in cash.

Ahern Rentals and noteholders continue to negotiate towards a possible settlement, according to sources close to the situation.