U.S. equipment rental company Neff Rental Inc filed for a prearranged Chapter 11 bankruptcy protection late Sunday in order to shrink its balance sheet and eliminate more than $400 million of debt.
Neff Rental has listed estimated assets in the range of $100-$500 million and has listed estimated liabilities of $500 million to $1 billion, court documents showed.
The company has obtained full commitments from its existing revolving lenders to provide a $175 million debtor-in-possession and exit financing, it said in a statement.
Neff Rental, whose customers include John Deere, Komatsu Ltd <6301.T> and Ingersoll-Rand plc , said it secured support from key stakeholders including its largest first lien term loan lenders.
The restructuring plan is backed by certain funds managed by Wayzata Investment Partners and Apollo Capital Management , the company said.
Both Apollo and Wayzata have agreed to exchange their first lien term loans for equity and have committed up to $119 million of new equity for recapitalization, Neff Rental said.
The company said the restructuring plan is subject to higher and better offers that may allow for additional recovery to creditors.
Neff Rental is ranked by Rental Equipment Register (RER) magazine as one of the nation's 10 largest equipment rental companies, according to its website. (www.neffrental.com).
The case is IN re: Neff Rental Inc, Case No. 10-12612, U.S. Bankruptcy Court, Southern District of New York.
(Reporting by Sakthi Prasad in Bangalore, Editing by Ian Geoghegan)