| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Ahern Rentals Inc. > News item |
Ahern Rentals exclusive plan periods terminated by bankruptcy court
By Caroline Salls
Pittsburgh, Dec. 28 - Ahern Rentals, Inc.'s exclusive periods for filing and soliciting votes on a plan of reorganization have been terminated, according to a Friday filing with the U.S. Bankruptcy Court for the District of Nevada.
The court also denied the company's request for a stay of the order pending appeal.
As previously reported, Ahern Rentals asked the court in July to extend its exclusive filing period to Nov. 30 from Aug. 20 and its solicitation period to Feb. 1, 2013 from Oct. 19.
In October, the company's noteholder group objected to the proposed extension.
"Ten months into this case the gridlock continues," the noteholder group said.
"If the debtor is granted a further extension of its exclusive period to file a plan, it will continue its pattern of delay and will file a plan at the latest possible moment.
"With the shield of exclusivity, the debtor will then seek to position the inevitable confirmation battle regarding its plan in February 2013, less than one month from the [debtor-in-possession] credit facility maturity.
"Under this timeline, the debtor will seek to pressure creditors and the court to yield to its plan to avoid a liquidation event caused by a DIP maturity."
The noteholders said the only fair option was for the court to open the plan process to competing plans.
According to the noteholder group's objection, the parties were unable to make any meaningful progress toward a consensual plan in mediation sessions.
Ahern filed a plan and related disclosure statement on Nov. 30.
Ahern Rentals, a Las Vegas-based equipment rental company, filed for bankruptcy on Dec. 22, 2011. The Chapter 11 case number is 11-53860.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.