Ahern Rentals obtained U.S. Bankruptcy Court approval on Friday for several steps to continue its business uninterrupted.
The most important measures allow it to continue to use the cash generated by its construction equipment leasing business, even though it is pledged as collateral for its lenders, to fund basic operations. In addition, it can tap a new line of credit, limited to $20 million for a short term until a hearing on putting a $350 million line in place can take place on Jan. 17.
Further, Ahern won permission to continue working with pre-bankruptcy customers on a business-as-usual basis and meet its 1,800-person payroll without interruption.
Ahern, one of Las Vegas’ long-standing companies, ran into trouble when the construction industry stumbled, leaving it unable to continue making payments on a $620 million debt load. For more than a year, the company tried to work out an extension of its loan payments with its banks, but could not reach the unanimous consent that its loan documents required.
As a result, the company filed for Chapter 11 protection on Thursday to continue to try to restructure its debt.
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