Event Rentals seeks OK of settlement with prepetition and DIP lenders

By Kali Hays

New York, April 15 - Event Rentals, Inc. and its official committee of unsecured creditors asked for court approval of a proposed settlement agreement reached with the company's prepetition lender and agent, its debtor-in-possession lender and agent and its buyer, CPR Acquisition Holdings, LLC, according to a Monday motion filed with the U.S. Bankruptcy Court for the District of Delaware.

The agreement resolves potential claims by the company against its prepetition lenders that came as a result of the committee's investigation into the company's business affairs, according to the motion.

The prepetition lenders and agent "strongly dispute" the committee's findings, but the committee said that on the basis of its investigation it intended to oppose and object to the forthcoming asset sale to CPR.

Under the terms of the agreement, the committee will not object to the sale and the company and the committee agree that the contested prepetition liens are valid.

In return, the prepetition and DIP lenders and agents agreed to add $600,000 to the company's wind-down budget and also agreed to support all aspects of the company's asset purchase agreement, including the provision of a $124 million credit bid, which reflects a portion of its outstanding prepetition debt, according to the motion.

A hearing is scheduled for April 29.

Event Rentals, an Inglewood, Calif.-based provider of event rental products and related services, filed bankruptcy on Feb. 13. The Chapter 11 case number is 14-10282.

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