U-Haul Parent Files Reorganization Plan
RENO, Nev. (AP) _ Amerco Inc., the bankrupt parent of the U-Haul International truck-rental company, Tuesday filed a plan for reorganizing its finances that it said would allow it to make full payment to creditors without diluting shareholder interests.
Reno-based Amerco, which has been under bankruptcy-law protection since June, filed the plan with the District of Nevada U.S. Bankruptcy Court.
Amerco’s Chapter 11 filing does not include or affect U-Haul operations.
When Amerco filed for Chapter 11, it listed $884 million in debt and $1.04 billion in assets as of March 31, as well as 21.3 million common shares outstanding.
In late 2002, Amerco defaulted on a $100 million principal payment owed on bond-backed asset trust notes. Since then it had been negotiating with representatives of its major creditors to restructure its debts. Filing for Chapter 11 was seen as a way to speed the restructuring of debt.
A court hearing on the reorganization plan is set for Nov. 18.
In late August, Amerco reported a loss of $25 million for fiscal 2003 and filed restated results for 2001 and 2002 that show losses in each of those years.
U-Haul rents about 185,000 trucks, trailers, and tow dollies to do-it-yourself movers through 15,600 centers in the United States and Canada.
Amerco shares closed Tuesday at $20.91, up $1.78, or 9.3 percent, on the Nasdaq Stock Market.