Court Confirms NationsRent Consensual Plan of Reorganization.Business Editors FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--May 14, 2003 NationsRent, Inc. announced today that the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware entered an order confirming the Company's consensual CONSENSUAL, civil law. This word is applied to designate one species of contract known in the civil laws; these contracts derive their name from the consent of the parties which is required in their formation, as they cannot exist without such consent. 2. Plan of Reorganization. In order to facilitate the Plan of Reorganization, NationsRent has obtained a commitment from a syndicate of lenders for $150,000,000 of senior secured financing, in addition to a commitment from the Baupost Group L.L.C. for $80,000,000 of new capital. With this important step behind it, NationsRent is expected to consummate its Plan of Reorganization and emerge from chapter 11 protection. On the effective date of the confirmed Plan of Reorganization, the Baupost Group and Phoenix Rental Partners, L.L.C. will control more than two thirds of the voting common stock of the reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. company. A group of the Company's pre-petition senior secured lenders, along with a trust for the benefit of the general unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. , will own the remaining minority interest. As outlined in the confirmed Plan of Reorganization, on the effective date, the Company's existing equity securities, including its common stock, will be cancelled and current holders of equity securities will not receive any distribution under the Plan. Upon emergence from bankruptcy, a new Board of Directors will succeed the Company's current Board of Directors. The initial slate of new board members includes Bryan T. Rich and Douglas M. Suliman Jr., who will serve as Co-Chairmen of the new Company, along with incoming Chief Executive Officer, Thomas J. ("Jeff") Putman. The other directors will be Thomas W. Blumenthal, Andrew P. Hines, Irving M. Levine, and Greg A. Rosenbaum. The new board combines extensive experience in the equipment services industry with expertise in finance and operations management Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. to guide the reorganized Company. Commenting on the Plan confirmation, Clark Ogle, the Company's current Chief Executive Officer, stated: "NationsRent has reached this important step as a result of the dedicated partnership of the Company's employees and the support of our valued customers and alliance partners. This team worked very hard to maintain exceptional service and expand the Company's customer base in tough economic times." The Company's incoming Chief Executive Officer, Jeff Putman, said: "We view this confirmation order as a tremendous accomplishment attributable to the tireless efforts of all constituencies involved in this consensual plan. We also see this as a promise of a new beginning for the employees, the customers, and the partners of NationsRent. Our goal is to build upon the considerable strengths of this enterprise and to make a positive contribution to the industries and communities that we serve." About NationsRent Headquartered in Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. , NationsRent is one of the country's leading construction equipment rental companies and operates 249 locations (81 at Lowe's Home Improvement locations) in 26 states. NationsRent stores offer a broad range of high-quality construction equipment with a focus on superior customer service at affordable prices with convenient locations in major metropolitan markets throughout the U.S. More information is available on its home page at http://www.nationsrent.com. Persons needing additional information should contact the NationsRent Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. Department at 954/760-6550. About Baupost The Baupost Group, L.L.C. was established in 1982, and today manages approximately $3.5 billion of equity capital for a diverse group of clients. The firm employs a value oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. investment philosophy and is an experienced investor in a broad range of asset classes, both in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad. CONTACT: Thomas Blumenthal and James Mooney James Mooney (1861-1921) was a notable anthropologist who lived for several years among the Cherokee. He was born at Richmond, Indiana. In 1885 he became connected with the Bureau of American Ethnology at Washington, D.C. He compiled a tribal list containing 3,000 titles. , The Baupost Group, L.L.C., at 617/210-8388. About Phoenix Phoenix Rental Partners, L.L.C. was formed in 2001 for the specific purpose of acquiring debt securities of NationsRent in the secondary markets. In 2002, Phoenix formed an investment alliance with Baupost to leverage the combined talents and capital of each organization as it relates to distressed investment opportunities in the construction equipment rental industry. Phoenix is majority owned by Bryan Rich and Douglas Suliman, who have over 30 years of operating and financing experience in the construction equipment rental industry. CONTACT: Bryan Rich and Douglas Suliman, Phoenix Rental Partners, at 508/351-1573. Cautionary Statement Regarding Forward-Looking Information and Related Matters Statements made by NationsRent that address activities, events, or developments that we expect or anticipate may occur in the future, including certain of the information contained in the First Amended Joint Plan of Reorganization and Disclosure Statement dated February 7, 2003, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that reflect the Company's current views with respect to current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including, but not limited to (i) NationsRent having filed for bankruptcy and factors relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's operations and (ii) the business environment in which NationsRent operates, which may cause the actual results of NationsRent to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those set forth in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2002, or in other filings made, from time to time, by NationsRent with the Securities and Exchange Commission. The forward-looking statements speak only as of the date when made and the Company expressly disclaims any current intention to update these forward-looking statements. |
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