The Las Vegas Review-Journal reports that Ahern Rentals Inc. has launched its counterbid to bring the company out of Chapter 11 bankruptcy under the control of CEO Don Ahern.
Ahern filed the counter proposal after second-tier lenders submitted their plan to pay the top-priority loans and everyone else in full, then take ownership of Ahern Rentals in payment for their debt.
Ahern Rentals’ newly filed counter proposal for reorganization promises to fully pay $111.5 million in top-priority loans. The company’s previous proposal would have repaid only $90 million or created replacement loans.
Under Ahern’s current proposal, second-tier lenders would receive $160 million in cash plus new notes to pay off a $267.7-million claim. Creditors who are owed smaller amounts will receive differing treatments.
The proposal would let Don Ahern keep 97% ownership of the company.
On March 8, a U.S. Bankruptcy Court judge may send either or both plans to creditors for voting.
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