United States District Court Judge Larry Hicks this week granted a motion by Ahern Rentals’ second lien note holders to dismiss Ahern’s appeal against an earlier ruling by a bankruptcy court judge that ended Ahern Rentals’ period of exclusivity. Hicks’ ruling vacated his stay order entered Dec. 21. The ruling opens the way for creditors to submit their own plans of reorganization as alternatives to the plans previously submitted by Ahern Rentals.
The note holders had not accepted the previous plan submitted by Ahern Rentals, which U.S. Bankruptcy Court Judge Bruce Beasley said was unfavorable to creditors because they would not be paid in full and would be paid over too long a period of time. Ahern Rentals, in the meantime, has continued to negotiate with creditors.
“Needless to say, we are very disappointed in the ruling by Judge Hicks and immediately filed an appeal with the Ninth Circuit Court of Appeals,” said Howard Brown, chief financial officer for Ahern Rentals.
Ahern Rentals filed for bankruptcy in December 2011. Since that time, with an improved equipment rental market, the company posted solid numbers in 2012. EBITDA increased significantly to more than $100 million according to the most recent reports the company filed with the court, compared to about $46 million in the second quarter of 2010.
While no alternative plan of reorganization has yet been filed, Ahern Rentals still must come up with a plan to satisfy his creditors or owner Don Ahern could risk losing control of the company.
Las Vegas-based Ahern Rentals is No. 7 on the RER 100.
