P&K Pole Company

Division: Phoenix Capital Resources, Phoenix Management Services


P&K Pole Company was a $30 million manufacturer of aluminum utility poles based in New Jersey.


P&K Pole had been suffering substantial loses for years as a result of increased competition, cyclical demand reductions, and increases in raw material costs. Lack of liquidity and concerns over unfunded pension liabilities forced P&K into a Chapter 11 liquidation. Congress Financial had a credit facility secured by all assets of P&K, including valuable equipment that was located on an environmentally-challenged site in Newark, NJ. Even though P&K did not own the property, the NJ DEP would not release the equipment for sale until all environmental issues were resolved.


Phoenix Management was engaged to wind down the business and liquidate the assets. Phoenix Management managed the receivables collections and recovered over 80%. Phoenix Management then entered into complex negotiations between the landlord, NJ DEP, Congress Financial and the U.S. Bankruptcy Trustee to resolve the resolution of the environmental claims and the ultimate release of the equipment for sale. Congress was eventually repaid in full, which exceeded its expectations.