Amerco files for Chapter 11, expects to pay creditors in full

New York, June 20 - Amerco made a voluntary Chapter 11 filing in the U.S. Bankruptcy Court for the District of Nevada and said it expects to repay its creditors in full without diluting shareholders.

The Reno, Nev. company, the parent of U-Haul, said it made the bankruptcy filing in order to expedite the restructuring of its debt.

The filing does not include U-Haul, Oxford Life Insurance Co. and its subsidiaries and Republic Western Insurance Co., among others.

Amerco said it has obtained a commitment for a $300 million debtor-in-possession facility and a $650 million bankruptcy emergence facility from Wells Fargo Foothill. Real estate subsidiary Amerco Real Estate Co. will likely file for Chapter 11 in the next 30-45 days in order to implement the DIP financing.

Amerco said its asset value is more than its debt. As a result it intends to repay its creditors in full without diluting shareholders.

On Oct. 15, 2002, Amerco defaulted on a $100 million principal payment on its series 1997-C bond backed asset trust notes. Since then, the company and its financial advisors have been negotiating with creditors to develop a consensual full-pay reorganization plan.

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