Neff gets court approval for next step in restructuring
By Murray Pollok20 July 2010
US bankruptcy courts have approved the next step in Neff Rental's restructuring plan regarding its Chapter 11 filing in May. The approval means Neff can seek approval for its plan from its creditors before the next court hearing on 14 September.
The ruling follows an earlier court hearing at which approval was given for US$175 million borrowing facility from some of its major creditors. Neff's refinancing plan has the approval of creditors representing 67% of Neff's $400 million debt.
In addition to the $175 million loan, some of Neff's major creditors have agreed to provide additional equity of $119 million to recapitalise the business.
Graham Hood, Neff Rental's chief executive officer, said; "We are pleased that Neff has reached another important milestone in executing our balance sheet restructuring, putting our company in a stronger financial position for the future".
Neff said it remained on track to complete its financial restructuring and emerge from Chapter 11. The United States Bankruptcy Court for the Southern District of New York has scheduled a hearing to consider confirmation of the plan on 14 September.