Ahern Rentals granted extra time
By Lindsey Anderson20 August 2012
Las Vegas-based Ahern Rentals has been given two more months to organize its Chapter 11 bankruptcy case.
At a hearing in Reno, NV, U.S. Bankruptcy Court Judge Bruce Beesley extended Ahern's exclusivity period until Oct. 9. Ahern is currently in debt of about $620 million. During the period, only Ahern Rentals can propose a Chapter 11 reorganization plan, but according to reports, once the two-month period is over, others can propose their own plans or creditors can introduce possible takeover plans.
Ahern had requested a three month extension to its exclusivity, saying that with time it would be able to repay everyone in full, on the basis that the company is performing better than expected.
According to the Las Vegas Review-Journal, Sphere Capital an affiliate of Platinum Equity, argued against giving Ahern more time saying that it was part of a strategy to keep chief executive Don Ahern's majority ownership intact.
Ahern's main creditor is Tom Gores, whose company, Platinum Equity, has more than $119 million of Ahern's $237 million second-lien note, according to court documents.