Ahern Rentals has officially emerged from Chapter 11 bankruptcy protection, the company said today. Through the company’s confirmed plan of reorganization, Ahern Rentals was successfully able to refinance its existing indebtedness and gain court approval despite a competing plan of reorganization from its junior creditors that sought a stake in the company.
Ahern’s two owners, Don Ahern and John Paul Ahern, retained 100 percent of the capital stock in the reorganized entity. The second lien holders received par plus pre-petition interest and all other creditors received 100 percent of their allowed claims.
Ahern Rentals implemented a business recovery strategy of opening multiple branches in new geographic markets to redeploy equipment to new markets after coming off high-profile jobs in Las Vegas early in the downturn. The company increased revenue and EBITDA significantly the past two years as the economy improved.
“We thank our customers and our employees, suppliers and business partners, whose loyalty during this process has been instrumental in our continued financial success and our success in emerging from bankruptcy,” said Don Ahern, president and CEO of Ahern Rentals. “We also want to thank our financial advisors, The Seaport Group and Oppenheimer & Co., for developing and helping us implement the plan that allowed us to successfully exit bankruptcy, and our legal counsel, Stoel Rives LLP, who advised us on our financing issues since 2004 and Gordon Silver, who served as our legal advisors.”
Ahern Rentals, based in Las Vegas, has 75 branches in 22 states. The company is No. 6 on the RER 100.
