Ahern Rentals Inc. and its bondholders have agreed to a path out of chapter 11 bankruptcy for the construction-equipment company, narrowly avoiding a showdown over rival restructuring plans, the Wall Street Journal reported today. In court papers filed on Friday, Ahern said that its success in lining up bankruptcy-exit financing has allowed it to improve payment terms for bondholders owed about $268 million, thereby winning their support for the plan. Under the amended plan, which a bankruptcy judge will consider at a June 5 hearing, the bondholders would receive immediate payment of $268 million in cash and the chance to receive another $25 million if the company changes hands within two years of exiting chapter 11. The bondholders would also receive another $10 million to cover the legal fees they racked up in Ahern's bankruptcy case, which has been pending since December 2011.
