NationsRent’s bankruptcy-reorganization plan calls for a group of lenders led by a Boston investor who sold his family’s businesses to NationsRent to take over the company. If a Delaware bankruptcy court approves the plan, NationsRent will become a privately held company.
Phoenix Rental Partners and the Baupost Group, both based in Boston, bought notes held by lenders to acquire majority control of NationsRent’s debt. The group and other senior lenders plan to convert the debt into a 95-percent equity stake in the reorganized company. The remaining 5 percent is to be held by unsecured creditors.
When the reorgainization plan takes effect in March, D. Clark Ogle, who was named chief executive this summer, will be replaced. The company has not named a successor.
After posting $80 million in losses and more than $1 billion in debts, NationsRent filed for bankruptcy protection a year ago. NationsRent will ask permission at a Jan. 27 bankruptcy court hearing to have creditors vote on the plan.
NationsRent was founded in 1997 and the company purchased 58 equipment rental businesses in less than five years.