NationsRent Inc. announced June 13 that it has emerged from the Chapter 11 reorganization process after completing all required actions and satisfying all remaining conditions to its consensual Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 14, 2003.
In conjunction with its emergence from Chapter 11, the company has obtained a $150-million senior secured revolving credit facility from a syndicate of lenders. In addition, The Baupost Group, L.L.C. has invested $80 million of new capital into the company.
As a result of the consummation of the Plan of Reorganization, the company emerges as a privately held company controlled by Baupost and Phoenix Rental Partners, L.L.C. All of the company’s existing equity securities, including its common stock, have been cancelled and the company will no longer be a public reporting company.
Commenting on this milestone, Jeff Putman, the newly elected chief executive officer of the company, said, “Our emergence from Chapter 11 reorganization marks the birth of a new Nation sRent, a feat due in large part to the dedication of our employees, our vendors, and our alliance partners to persevere and succeed through what has been a difficult economic period. This team will continue to provide superior service to our growing customer base. This restructuring has enabled us to put our financial house in order, significantly reducing debt and increasing our capital base.”
Putman continued, "Our new, financially sound company is well positioned for success. We will build on this solid foundation by providing our customers with a single source for a wide range of equipment and services, tailored to suit their individual needs, so they will return to NationsRent time after time. We believe the timing of this emergence could not be better in light of our improving business environment.”
In addition to Putman, the company’s senior leadership team will include Thomas J. Hoyer, who will serve as the chief financial officer. The company’s regional vice presidents will consist of Ron Halchishak, Francis Hassis, John Jackson, Fernando Pinera, Tim Stommel, and Bill Stewart.
Headquartered in Fort Lauderdale, FL, NationsRent is one of the country’s leading construction equipment rental companies and operates more than 250 locations (with more than 80 at Lowe’s Home Improvement locations) in 26 states. NationsRent stores offer a broad range of construction equipment with a focus on customer service with locations in major metropolitan markets throughout the U.S.
For more information, visit www.nationsrent.com.
