Ahern's Chapter 11 plan gets green light
By Lindsey Anderson06 June 2013
Ahern Rentals’ Chapter 11 bancruptcy plan has been confirmed by the US Bankruptcy Court, paving the way for an exit of the Chapter 11 process and allowing main shareholder Don Ahern and his brother John Ahern to retain their 100% share of the business.
Ahern Rentals secured two new lines of credit and was able to meet the needs of its creditors. Bondholders will receive a full, immediate payment of $268 million.
In a statement on its website Don Ahern, Ahern’s president and CEO, said; “We thank our customers and our employees, suppliers and business partners, whose loyalty has been instrumental in keeping Ahern Rentals competitive during the past 60 years…Today, Ahern Rentals has built a strong foundation for continued growth, and we look forward to our final emergence from bankruptcy.”
He said the Ahern business “continues to improve considerably due to, among other things, significant improvement in the global economy and the resulting recovery in the equipment rental market".
Bondholders will receive another $10 million to cover legal fees and also have the chance to receive an additional $25 million if Ahern were to change ownership within two years of exiting Chapter 11.