Neff court approval paves way for Chapter 11 exit

Neff Rental said its restructuring plan had been approved by the bankruptcy court for the Southern District of New York, paving the way for its emergence from Chapter 11 bankruptcy protection "in the next few weeks".

Neff's restructuring plan, which will see its debts reduced by more than US$400 million, is supported by private equity firm Wayzata Investment Partners.

Under the plan Wayzata will provide approximately $181.6 million in equity financing to Neff, while Neff's existing lenders will provide an additional $175 million revolving credit facility. Neff will transfer substantially all of its business and operations to a new company called Reorganized Neff, L.L.C., which will own and manage the rental business.

Graham Hood, Neff's chief executive officer, said he was pleased that the restructuring had taken less than five months to complete; "As a result of the restructuring, Neff will be able to recapitalize its business and provide for future capital needs, while preserving approximately 900 jobs."

Neff, based in Miami, Florida, is one of the top 20 equipment rental companies in North America.