NationsRent has filed its first amended reorganization plan about a year after entering Chapter 11 bankruptcy reorganization. Under the proposal, filed Dec. 23 in U.S. Bankruptcy Court in Wilmington, Del., NationsRent’s bankers would own 95 percent of the restructured equipment rental company, which amounts to about a 20 percent recovery for the lenders.
Other secured creditors – primarily bankers -- owed $46.9 million would receive full recovery on their claims under the plan. Unsecured creditors, including some former owners who are owed $400 million, would get 5 percent of the restructured company as well as $300,000 in cash.
The court has set a January 27 hearing to confirm the plan which, NationsRent CEO D. Clark Ogle said, would give the Fort Lauderdale, Fla.-based consolidator a target of the end of March to emerge from Chapter 11.
NationsRent filed for voluntary Chapter 11 Dec. 17, 2001, listing assets of $1.6 billion and $1.2 billion in debts in its filing.
The consensual plan of reorganization was facilitated, in large part, by a new group of investors that have established a leadership role in the Company’s pre-petition senior secured lender group. This group of investors is led by Boston-based Phoenix Rental Partners and The Baupost Group.
NationsRent is No. 6 on the RER 100.