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08.12.2012

Ahern loses control of Chapter 11 process

Ahern Rentals Chapter 11 process has been opened up for third parties to put forward alternative reorganisation plans to that presented by current owner Don Ahern for the Las Vegas based rental company.

Reno, U.S. Bankruptcy Court Judge Bruce Beesley ruled yesterday on the ending of the exclusivity period. Other parties can now put forward their own plans for the creditors and note holders to consider. This could include a takeover by a competitor.

The judge ruled that Aherns plan does not pay creditors out in full and yet the plan has him retaining his full ownership position and did not therefore comply with Chapter 11 rules.

While this process is far from over, it has entered a new phase.

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