Bankruptcy often allows companies and individuals the opportunity to get a fresh start on life. That certainly seems true in the case of a Nevada-based construction equipment supplier. Ahern Rentals Inc. , recently filed a Chapter 11 bankruptcy petition that will allow it to remain in operation while developing a financial plan to pay off its debt obligations.

In these tough economic times, many companies and individuals alike have found themselves struggling to meet their financial obligations. That may well be the case with Ahern Rentals, which rents and sells construction equipment such as scissor lifts, front-end loaders and excavators. Unfortunately, due to the housing crisis, it may not be enjoying as much success as it may have just a few years ago.

It made the bankruptcy filing on December 22 in a US bankruptcy court based in Reno. In the filing, it claims assets of between $500 million and $1 billion against liabilities of more than $500 million. At the moment, the company CEO has said that the construction equipment supplier has enough cash on hand to continue operations, and Chapter 11 bankruptcy can certainly allow for a company to carry on normally. Pending bankruptcy approval, the company also claims that lenders have agreed to give it $50 million in financing.

Based on the information provided in a local news report, it appears that the Chapter 11 bankruptcy filing could allow the company to restructure its debt obligations so that it may become a leaner, more efficient entity. That will in turn allow it to continue providing jobs to many Americans, which is particularly important given the continuing aftermath of the financial crisis. For those Nevada businesses and individuals who are also interested in the possibility of bankruptcy, it may be beneficial to meet with an experienced bankruptcy attorney.

Source: The Canadian Business News, "Ahern Rentals files for Chapter 11 protection," The Canadian Business News Staff, Dec 23, 2011