NES Rentals emerged from Chapter 11 bankruptcy protection Feb. 11. NES acquired 42 companies between 1996 and 2001, and was operating under an $800 million debt burden when it filed for bankruptcy protection in June. NES hired Carl Marks Consulting Group to work with NES management to develop and implement its restructuring strategy. During the reorganization, the company analyzed its core business, improved management of its 45,000 pieces of equipment and consolidated back office operations. The reorganization plan includes a three-year, $496 million exit loan from a bank group led by Wachovia. A portion of the loan will be used for capital expenditures to revitalize the company’s fleet. NES eliminated approximately $275 million in debt from its balance sheet as bondholders agreed to convert it to approximately 97.5-percent equity ownership in the company. A new board of directors will elect a chief executive for the company.
NES Rentals emerges from Chapter 11
Mar 8, 2004