Ahern Rentals, Inc., a leader in the equipment rental industry, has announced that on Friday, Jan. 27, 2012, the United States Bankruptcy Court for the District of Nevada in Reno, Nevada approved the final Debtor-in-Possession (DIP) financing with approximately $66 million of availability. In addition the court approved a series of other motions to ensure that the Company will not have any interruption in maintaining and honoring its commitments to its current customers, vendors and employees during the reorganization process. Included in these motions was a 503 (b) (9) motion which allows (but does not require) Ahern to pay its vendors for goods received within 20 days of filing provided that the vendor continues to provide goods on the same terms to the company.
Ahern Rentals, Inc. filed for Chapter 11 on Dec. 22, 2011 because the company was unable to extend the maturity of its Revolving Credit Facility, which had a maturity date of August 21, 2011. While the company’s financial performance continues to improve,
The company intends to continue its business operations throughout the administration of the Chapter 11 and to honor its existing customer, vendor and employee commitments without interruption. Ahern Rentals, Inc. will use the DIP financing to meet its working capital needs during the reorganization process.
“We anticipate there being no interruption to our operations. With our DIP Facility, we will have sufficient liquidity to meet our commitments to our customers, vendors and employees,” said Don Ahern, Chief Executive Officer.
“We have been experiencing a significant improvement in our business, with a substantial increase in our utilization levels and improved margins. The company provides a valuable service for its customers and we do not expect the bankruptcy filing to affect our ability to continue to offer customers highly reliable and quality equipment and service. As to our customers, vendors and employees it is business as usual.”
Ahern Rentals is an equipment rental company with 74 locations throughout the United States. Through our network of equipment rental locations, we rent a full range of construction equipment, sell our used rental equipment, new equipment, parts, supplies and related merchandise, and provide maintenance, repair and other services that supplement our rental activities. The types of equipment we rent range from a fleet of high reach equipment and earth engaging units to hand tools.
The Company’s bankruptcy counsel is Gordon Silver and its financial advisors are Oppenheimer & Co. and The Seaport Group.
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