Event Rentals, committee and liquidity parties settle notes dispute

By Caroline Salls

Pittsburgh, April 21 - Event Rentals, Inc. and its official committee of unsecured creditors requested court approval of a settlement agreement between the company, the committee and its members and the liquidity parties in Event Rentals' bankruptcy case, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The liquidity parties, which own all or substantially all of the equity interests in parent debtor Special Event Holding, Inc., include SAC Offshore Capital Funding, Ltd., SAC Domestic Capital Funding, Ltd., JPM Mezzanine Capital, LLC, Quad-C Partners VII, LP, Quad-C Principals LLC, Quad-C Management, Inc. and Quad-C VII Management Corp.

The company said some of the liquidity parties also purchased senior subordinated unsecured notes from the Event Rentals debtors.

Under an April 14 lender settlement, the company said it, the committee and the lenders agreed to negotiate the provisions of a Chapter 11 plan, which will contain customary broad and mutual release provisions among the debtors, the committee, the liquidity parties, the lenders and other participating creditors.

Although the lender settlement made substantial progress in resolving disputes among the parties, Event Rentals said the committee claims, and the liquidity parties dispute, that the debtors' estates may have claims or defenses against the liquidity parties related to the liquidity note obligations.

The committee said the claims include the right to recharacterize the liquidity note obligations as equity.

Under the settlement between the company, the committee and the liquidity parties, the liquidity parties will not receive any distribution from or in connection with the Event Rentals Chapter 11 cases and will waive any claim associated with the liquidity obligations in exchange for specified releases, covenants, agreements and promises.

The settlement is subject to the closing of Event Rentals' asset sale, court approval and the confirmation and effectiveness of the plan established in the lender settlement.

Each unsecured creditor voting in favor of the plan will be deemed to have released the liquidity parties to same extent as the committee and its members, the motion said.

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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