Creditors to vote on Ahern restructuring plans in May
12 March 2013
Ahern Rentals was back in court last week as two separate plans were set forth to get the company out of Chapter 11 bankruptcy. On March 8, U.S. Bankruptcy Court Judge Bruce Beesley approved disclosure statements from the company and its junior lenders. The plans are now set in motion to be voted on by creditors.
According to the Las Vegas Review-Journal, the plans are similar for the most part except the lenders’ plan “accepts ownership of the longtime pillar of the Las Vegas business community as repayment; the company's version would pay them a combination of cash and new notes while letting Ahern retain his 97 percent stake.”
Requests for comment to Ahern Rentals from ALH were not immediately returned.
Voting will take place in May.
The first plan proposed back in late 2012 saw Ahern paying $111.5 million in senior loans and $267.7 million in junior, while Ahern remained the company owner. At the time, Judge Beesley said the plan was against basic bankruptcy laws that say owners lose part of their position if creditors are not repaid in full.
Since then, court records show Ahern repaid some senior loans in cash. After voting in May, the case could go to court in June, depending on if the case is settled or not.
