Fort Lauderdale, Fla.-based NationsRent announced this week that it has taken a significant step toward completion of its restructuring by filing a consensual plan of reorganization. The plan has been developed, and is supported, by the company’s prepetition senior secured lenders and the official committee of unsecured creditors.
A hearing is scheduled for January 27, to approve a disclosure statement for the purpose of soliciting approval of the proposed plan. Under the plan, substantially all of the claims of the company’s prepetition senior secured lenders and general unsecured creditors will be converted into equity.
“With this milestone behind us, we are well on our way toward completion of our restructuring, with the target to emerge from Chapter 11 by the end of March 2003,” said D. Clark Ogle, NationsRent’s CEO.
The consensual plan of reorganization was facilitated, in large part, by a new group of investors that have established a leadership role in the company’s prepetition senior secured lender group. Boston-based Phoenix Rental Partners and the Baupost Group lead this group of investors. With the support of this new group, the proposed plan positions the company for growth with a well-financed, conservative balance sheet.
