Ahern Rentals secures $415 million exit finance

Ahern Rentals has asked a Nevada bankruptcy judge to sign off on a US$415 million financing package from Jeffries Finance LLC to fund its Chapter 11 exit, according to court papers filed May 19.

Ahern has not provided any further details or costs related to the Jeffries financing option and the judge still has to decide on Ahern's restructuring plan or a competing plan put forward by creditors earlier this year.

Creditors voted May 13 on the two plans on offer, with the US Bankruptcy Court meeting on June 3 to hold the ‘confirmation meeting’ to determine which of the two plans is approved.

The votes and the confirmation hearing will determine whether Don Ahern continues as the major shareholder and CEO of the business. The noteholders have not said whether existing management, including Ahern, would continue in their current roles in the event that its reorganisation plan is approved.

The noteholders are a group of private equity firms comprising Del Mar Master Fund, Feingold O’Keefe Capital, Nomura Corporate Research & Asset Management, Och-Ziff Capital Management Group, Sphere Capital and Wazee Street Capital Management.

Ahern Rentals, based in Las Vegas, is the largest independent rental company in North America, with revenues in 2012 of $353.4 million. It entered Chapter 11 bankruptcy protection in December 2011.