The U.S. Bankruptcy Court for the District of Delaware last week confirmed NationsRent consensual plan of reorganization, thus setting the stage for the Fort Lauderdale, Fla.-based rental firm to emerge from Chapter 11 bankruptcy protection.
Once the emergence is finalized, the Baupost Group and Phoenix Rental Partners will control two-thirds of the voting common stock of the reorganized company. A new board of directors will succeed the company’s current board of directors. Bryan Rich and Douglas Suliman will be co-chairmen of the company and Jeff Putman will be CEO. Other directors will be former Multiquip CEO Irv Levine, and Thomas Blumenthal, Andrew Hines and Greg Rosenbaum.
Rich told RER he expected the deal to close in early to mid-June.
“We see this as a promise of a new beginning for the employees, the customers and the partners of NationsRent,” said incoming CEO Putman. “Our goal is to build upon the considerable strengths of this enterprise and to make a positive contribution to the industries and communities that we serve.”
To facilitate the plan of reorganization, NationsRent obtained a commitment of $150 million of senior secured financing from a syndicate of lenders, in addition to a commitment from the Baupost Group for $80 million of new capital.
NationsRent, No. 6 on the RER 100, has 249 locations in 26 states, including 81 rental departments in Lowe’s Home Improvement stores.
