Neff Corp. won court approval to borrow $175 million during its bankruptcy case after resolving creditor objections to its financing. The loan will fund Neff’s operations during the Chapter 11 process and convert to exit financing upon the company’s emergence from bankruptcy.

A U.S. Bankruptcy Court judge gave final approval to the loan at a hearing after Neff reached an agreement with unsecured creditors who oppose the company’s restructuring. Neff filed for bankruptcy May 16 to restructure about $600 million in debt. Neff negotiated a reorganization plan with senior lenders to eliminate more than $400 million in debt.

The plan calls for a $119 million rights offering backed by Apollo Capital Management and Wayzata Investment Partners.

Unsecured creditors slated to receive a 1-percent recovery had opposed the bankruptcy loan, which they said binds the company to a restructuring plan at their expense. The creditors had opposed the loan in part because it extends liens to lenders, which could put a damper on potential offers to acquire the company. Under the new agreement, the creditors will be able to challenge new liens that lenders will receive as part of the financing.

Bank of America Corp., Wells Fargo and GE Capital Markets are providing the financing. Neff said it will pay those lenders about $5.5 million in fees.

Also this week, Neff obtained court approval to pay more than $900,000 in bonuses to 10 top executives, if those officials meet certain earnings targets for three specific timeframes. Neff said the bonus payments are critical to maintain the company’s operations.

Based in Miami, Neff Rental is No. 16 on the RER 100.