LAS VEGAS — Ahern Rentals received an extension of the 120-day period in which the company can exclusively propose a reorganization plan to exit bankruptcy, VegasInc.com reported. U.S. Bankruptcy Judge Bruce Beesley in Reno, Nev., granted Ahern Rentals an extension until Aug. 20.
Las Vegas-based Ahern Rentals filed for Chapter 11 bankruptcy protection Dec. 22 to restructure more than $600 million in debt. The extension will give owner Don Ahern and his financial advisers additional time to develop the reorganization plan and to possibly find new financing.
Bloomberg News recently reported that Platinum Equity LLC, owned by takeover specialist Tom Gores, is believed to be interested in a takeover using the portion of Ahern debt owned by Platinum. Platinum's affiliate Sphere Capital LLC owns more than $119 million of Ahern's $237 million in second-lien note debt. Gores and Platinum also own Maxim Crane Works.
Ahern Rentals chief financial officer Howard Brown said in a declaration that the extra time will enable the company to address liabilities as well as study how to deal with 74 leases around the country used for Ahern branch locations. The Bankruptcy Code facilitates debtors being able to get out of unprofitable leases.
Meanwhile, business has improved for Ahern Rentals, which posted a 13.9-percent total volume increase in 2011, $333.5 million, compared with $292.7 million in 2010. Its rental volume total of $301.4 million was a 22.1-percent year-over-year jump.
Ahern Rentals is No. 7 on the RER 100.