NES Rentals

Summary

Chief Restructuring Officer

Chicago, IL

One of the largest equipment rental companies in the U.S.

NES was one of the largest equipment rental companies in the U.S. It grew through an aggressive acquisition strategy that resulted in the roll-up of 42 businesses in the industry.

CMA professionals were appointed CRO and COO at NES Rentals Holdings, Inc. (“NES”) and successfully guided the Company through Chapter 11 bankruptcy.

Key Challenges

Fleet Synchronization

Over Leveraged Balance Sheet

Deteriorating Financial Performance

Engagement Highlights

Conflicting priorities regarding the disposition of NES were fundamental: the bank group wanted to rapidly reduce debt load, whereas the fleet required meaningful reinvestment to sustain the business.
Carl Marks executed a restructuring plan which included:
- Negotiating a balance sheet restructuring with the 36-member bank group and the bond holders; most critically, senior subordinated notes were converted to equity.
- Instituted fleet performance controls and matrices to fully leverage assets – developed comprehensive, enterprise-wide fleet plan to align assets with demand, manage mix in a market driven fashion to maximize fleet utilization and reduced fleet age to minimize maintenance costs and maximize “up-time”.
- Stabilized the organization – Refocus sales at the local level to increase ROI, relocate headquarters to less expensive facility, consolidate back-office operations.
- Negotiated exit financing with the existing bank group – exit facility to provide for a $90 million fleet revitalization program critical to the strategy.

NES Rentals

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

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