Lightyear's Neff Rental Goes Bankrupt

Neff Rental has filed for a prearranged Chapter 11 bankruptcy restructuring. The deal will eliminate more than $400 million of the construction and industrial equipment rental company's debt. Its first lien term loan holders, Wayzata Investment Partners and Apollo Capital Management, have agreed to exchange their loan holdings (about 67% of the company's first lien term loan) for equity and to backstop an investment of up to $119 million of new equity. A large portion of Neff's debt comes from its $900 million 2007 LBO by Lightyear Capital and Norwest Equity Partners.