LAS VEGAS —The United States Bankruptcy Court this week approved the final debtor-in-possession financing for equipment rental giant Ahern Rentals for about $66 million of availability. The court also approved a series of other motions to ensure that Ahern will not have any interruption in maintaining and honoring its commitments to its current customers, vendors and employees during the reorganization process.
Included was a motion that allows but does not require Ahern to pay its vendors for goods received within 20 days of filing provided that the vendor continues to provide goods on the same terms to the company.
Ahern Rentals filed for Chapter 11 Dec. 22 because it was unable to extend the maturity of its revolving credit facility, which had a maturity date of Aug. 21, 2011. While the company’s financial performance has continued to improve, it was forced to seek bankruptcy protection to address the maturity of its revolving credit facility, even though about 90 percent of the company’s lenders consented to an extension. The company said it is continuing its business operations throughout the administration of Chapter 11 and to honor its commitments without interruption. Ahern Rentals will use the DIP financing to meet its working capital needs during the reorganization process.
“We anticipate there being no interruption to our operations,” said CEO Don Ahern. “With our DIP facility, we will have sufficient liquidity to meet our commitments to our customers, vendors and employees. We have been experiencing a significant improvement in our business with a substantial increase in our utilization levels and improved margins. The company provides a valuable service for its customers and we do not expect the bankruptcy filing to affect our ability to continue to offer customers highly reliable and quality equipment and service. As to our customers, vendors and employees it is business as usual."
Ahern Rentals’ bankruptcy counsel is Gordon Silver and its financial advisors are Oppenheimer & Co. and The Seaport Group.
Based in Las Vegas, Ahern Rentals is No. 7 on the RER 100. It has 74 locations in the United States.