Ahern Rentals Inc. has launched its counterbid to bring the company out of Chapter 11 bankruptcy proceedings under the control of CEO Don Ahern.
Late Monday night, the company filed a new reorganization plan that promises to pay $111.5 million in top-priority loans in full following a judge’s approval. Previously, Ahern Rentals proposed paying just $90 million up front or creating replacement loans.
Second-tier lenders would receive $160 million in cash plus new notes to pay off a $267.7 million claim.
Other groups of creditors with much smaller amounts at risk will receive differing treatments.
If approved, Don Ahern would keep his 97 percent stake in the company.
Three weeks, ago, the second-tier lenders submitted their own plan to pay the top-priority loans and everyone else in full, then take ownership in repayment of their debt.
Both plans will face their first test on March 8, when U.S. Bankruptcy Court Judge Bruce Beesley could decide to send either or both plans to creditors for voting.
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