Ahern has until Nov. 30 for bankruptcy plan
01 November 2012
Las Vegas-based Ahern Rentals has one month to present its reorganization plan before U.S. Bankruptcy Court Judge Bruce Beesely. Beesely also said Ahern must present a first draft of a reorganization plan within the next three weeks. Don Ahern filed his case in December but has managed to round-up additional time way past the usual three-month exclusivity period. Chapter 11 law allows three months for companies to propose a plan, although a judge can grant extensions, as has been the case with Ahern.
According to reports, Ahern's attorney William Noall said Ahern Rentals has installed a new performance management software system that is “key to predicting how the company will perform” in the coming years. For Ahern to emerge from Chapter 11, he must convince Judge Beesely that he has the financial resources to move forward and not revert to defaults.
Despite the ongoing case, Ahern Rentals operated profitably for the year through September, Noall said. The company is 11.7 percent ahead of its budget and is running at $101.4 million with earnings before interest, taxes, depreciation and amortization.
According to court papers, Ahern entered bankruptcy with $637.5 million in loans secured by all of its assets, with some of it rolled into a loan that was made to keep operations going during the case.