NASDAQ reported equipment renter Ahern Rentals Inc. can begin utilizing a $350 million bankruptcy loan from its big-bank lenders, primarily to pay off some of its debt.

According to the report, Judge Bruce Beesley of U.S. Bankruptcy Court in Reno, Nev., approved Ahern's request to borrow $20 million on the loan before a final hearing is held early next year. A group of existing lenders including Bank of America will be providing the financing to Ahern.

As reported, Ahern filed for Chapter 11 protection last week to restructure its new debt. The company said that if it receives Beesley's final approval of the $350 million loan, it will use $252 million of the money to pay off a revolving loan.

The report states the company has more than $600 million in total debt, according to court papers. The company had sought a restructuring outside the court system in the past year and received support for a one-year extension of the maturity date of the $ 350 million revolving loan from the majority of its creditors. But three revolving lenders refused to sign on to the deal, according to court papers, and when the loan matured earlier this month, Ahern was forced to file for bankruptcy.

The company has opened more than 20 new branches in recent years, and its 74 locations are spread among 22 states.