The Las Vegas Review-Journal reported Ahern Rentals Inc. will retain sole control of its Chapter 11 bankruptcy case for another month amid continuing friction with lenders, although a judge indicated on Wednesday that would be the end.
According to the report, U.S. Bankruptcy Court Judge Bruce Beesley ordered Ahern to show the first draft of its reorganization plan to lenders in three weeks to try to push the case forward. The construction equipment leasing company, a fixture in the Las Vegas business community for six decades, filed the case in December but has made only halting headway in coming up with a financial blueprint to escape bankruptcy.
The report also states three groups of lenders holding about $335 million in debt complained that Ahern's strategy has been to drag out the case as long as possible, hoping that improved results will allow it to force losses on the lenders and keep Don Ahern as the 97 percent owner.
According to court papers, Ahern entered bankruptcy with $637.5 million in loans secured by all of its assets, with some of it rolled into a loan that was made to keep operations going during the case.
Read the full news story on The Las Vegas Review-Journal.