LAS VEGAS —U.S. Bankruptcy Court Judge Bruce Beesley has ordered to show the first draft of its reorganization plan to lenders within three weeks, the Las Vegas Review-Journal reported. The judge said Ahern Rentals will have sole control of its Chapter 11 process until Nov. 30, although once the plan is presented, Ahern might be able to extend the time to round up support.
Ahern Rentals filed for Chapter 11 bankruptcy protection in December 2011, but has received several extensions in presenting its reorganization plan. While most creditors have, according to sources close to the company, been willing to accept Ahern’s settlement efforts, larger creditors — most notably Platinum Equity — have been more resistant. Sources have indicated, however, that Platinum has looked to unload its debt and is now more open to a settlement with the company.
Ahern attorney William Noall indicated Ahern Rentals has installed a new performance management software program that can project future performance accurately. Ahern Rentals has operated profitably with EBITDA of more than $100 million for the year through September, 11.7-percent ahead of budget, according to reports.
Some creditors have argued, however, that the upturn in Ahern’s performance is not likely to be sufficient to pay off all creditors in full. One attorney for a smaller creditor said, however, that termination of exclusivity would be harmful to unsecured creditors, to employees and other suppliers, particularly local ones, which are dependent on their business with Ahern.
Ahern Rentals entered bankruptcy with $637.5 million in loans secured by its assets, with some rolled into a loan to keep operations going as the case proceeds.
Las Vegas-based Ahern Rentals is No. 7 on the. The company totaled $333.5 million in revenue in 2011 and is expected to increase that total in 2012. The company has 76 U.S. branches.