FT. LAUDERDALE, Fla. — NationsRent is seeking court approval to extend its exclusive periods in which it can file a reorganization plan and lobby creditors for support.
According to court papers obtained by Dow Jones Newswires, the company wants until Aug. 16 to file a plan and to Oct. 16 to solicit creditor approval. A hearing date on the issue was set for April 26 in the U.S. Bankruptcy Court in Wilmington, Del.
If the court turns down the company's request, one exclusive period would have expired as of April 16 while the other will expire June 17. Because the company filed its motion April 8, it will maintain exclusivity until the court rules on its request.
NationsRent also said it finalized a business plan and intends to work with its lenders and unsecured creditors committee to review the plan and develop a new capital structure that would provide the foundation for a plan of reorganization.
The official committee of unsecured creditors involved in the Chapter 11 bankruptcy is objecting to the company's request to extend its exclusive right to file a reorganization plan.
The committee said it doesn't object to an extension of the exclusive filing period through June 30, which is the date fixed by the final debtor-in-possession order and DIP loan documents for the company to file a plan. The objection also said that the committee reserves the right to end exclusivity either before or after the company files a plan.
In other developments, a committee of unsecured creditors filed a lawsuit against James Kirk, former NationsRent CEO and president of NationsRent.
The creditors are demanding that Kirk return $2 million he received in exchange for his resignation, be ordered to return amounts paid on his behalf to third parties, and be ordered to pay restitution and interest on amounts he received to cover attorneys' fees and other expenses.
According to the lawsuit, Kirk signed an executive transition agreement that included the $2 million severance payment, and other terms, just three days before NationsRent filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in Wilmington, Del., Dec. 17, 2001.
In other NationsRent news, RER has confirmed that Gerald Weber has resigned as executive vice president of operations.
NationsRent is No. 6 on the RER 100.
