07.08.2012

Ahern gets more time

Ahern Rentals has been granted two more months in control of its Chapter 11 bankruptcy case in spite of the fact that several creditors have expressed dissatisfaction with the progress.

At a hearing in Reno, Nevada - U.S. Bankruptcy Court Judge Bruce Beesley extended Ahern's exclusivity period until October ninth. At the same time he agreed to bring in another bankruptcy judge as a mediator between the company and the holders of $618 million in debt.

During the exclusivity period, only the company can propose a Chapter 11 reorganisation plan. Once the period expires, others can put forward plans or takeover proposals for the creditors to consider.

Ahern had requested a three month extension to its exclusivity, suggesting that with time it would be able to repay everyone in full, on the basis that the company is performing better than expected.

Sphere Capital an affiliate of Platinum Equity, argued against giving Ahern more time saying that it was part of a strategy to keep chief executive Don Ahern's majority ownership intact.