Ahern Rentals misses $10 million interest payment

Ahern Rentals Inc. said it did not make a $10.9 million interest payment that was due on Tuesday. The Las Vegas-based company said the interest was due on its 9.25 percent Second Priority Senior Secured Notes due 2013.

"We are engaged in discussions with the lenders under our credit agreement ... and our decision to not make the payment was done with their support," Ahern Rentals CEO Don Ahern said in a statement.

The company entered a forbearance agreement with a majority of the revolving lenders under its credit agreement. The agreement says that, subject to conditions, the lenders will take no action as a result of any default that arises from nonpayment of interest on the notes or specified events through Aug. 21.

Ahern Rentals employs 1,580 workers at 71 construction-equipment rental branches nationwide.