Neff Rental said it has selected an affiliate of Wayzata Investment Partners as the successful bidder to sponsor Neff’s plan of reorganization at a court-approved auction conducted as a part of Neff’s pre-arranged reorganization proceedings. The Miami-based rental company also said it has designated a bid submitted by a group composed of an affiliate of Odyssey Investment Partners and certain of Neff’s second-lien lenders as the backup bid submitted at the auction.
Neff also filed a revised Chapter 11 plan to incorporate the terms of Wayzata’s successful bid. As a result of the auction, cash recoveries available to Neff’s second lien lenders have increased from $10 million to $73 million. Also, first lien term loan lenders may elect to receive payment in full in cash or participate in a rights offering for up to $181.6 million, backstopped by Wayzata.
Neff remains on track to complete its financial restructuring, eliminate more than $400 million in debt, and emerge from Chapter 11 in the near term. The deadline to vote on Neff’s plan is September 1, with Neff’s confirmation hearing scheduled for September 14.
“I am pleased with the auction results and the additional value for our stakeholders generated by the auction,” said Graham Hood, Neff CEO. “I look forward to working with Wayzata Investment Partners to build long-term value for Neff and its stakeholders.”
Neff Rental filed for Chapter 11 bankruptcy protection in mid-May. The company is No. 16 on the RER 100.