20.08.2010

Wayzata to fund Neff

US based rental company Neff Rental, has announced that it has selected an affiliate of Wayzata Investment Partners to sponsor its plan of reorganisation, following a court-approved auction conducted as a part its Chapter 11 reorganisation proceedings.

Neff also selected an affiliate of Odyssey Investment Partners and some of its second lien lenders as the "backup" sponsor. The company has filed a revised Chapter 11 plan to incorporate the terms of Wayzata's bid .

As a result of the auction, the cash available to Neff's second lien lenders has increased from $10 million to $73 million, while the first lien term loan lenders will receive payment in full, either in cash or by participating in a rights offering for up to $181.6 million. The rights offering will be fully underwritten by Wayzata.

With the financing now in place Neff plans to complete its financial restructuring under the Chapter 11 bankruptcy process, eliminating more than $400 million in debt and clearing it to emerge from Chapter 11.
The deadline to vote on Neff's Plan is September 1st with the confirmation hearing scheduled for September 14th.

Graham Hood, Neff's chief executive officer said: "I am pleased with the auction results and the additional value for our stakeholders generated by the auction. I look forward to working with Wayzata Investment Partners to build long term value for Neff and its stakeholders."