Phoenix Completes the Sale of Conshohocken Rail, LLC
Phoenix Completes the Sale of Conshohocken Rail, LLC to Subsidiary of FirstCity Crestone LLC
PHILADELPHIA (June 28, 2012) —- Leading middle market turnaround management firm, Phoenix Management Services, acting as Receiver, through its affiliate PMCM, LLC, successfully marketed and sold the assets of Conshohocken Rail, LLC (“CR”) on June 1, 2012 to Conshohocken Recycling & Rail Transfer, LLC (“CR&RT”)(www.cr-rt.com), a subsidiary of Regional Rail, LLC, a holding of FirstCity Crestone LLC.
Phoenix had operated CR, a construction demolition and debris (“CD&D”) waste transfer station located in Conshohocken Pennsylvania, since April 1, 2010, when they were appointed to serve as Receiver by the Court of Common Pleas of Montgomery County, Pennsylvania. During this period, Phoenix successfully stemmed CR’s cash operating losses and maintained operations.
The protracted time between CR being placed in receivership and the sale of its assets was due to a number of factors, including environmental due diligence, and time required for CR&RT to obtain required approvals from the Pennsylvania Department of Environmental Protection.
“It was a challenge to operate the Company during this period of economic uncertainty given the dampening impact on new construction that feeds CR’s volume. However, by maintaining a high level of customer service and competitive pricing, we were able to maintain adequate volume in order to operate the Company through the sale of its assets to CR&RT as a going concern, retaining the jobs for the area,” said Rick Szekelyi, Phoenix Managing Director.
Bob Parker, President of Regional Rail, added “we are enthusiastic over the opportunity to grow the Company’s business. We plan to grow the business by implementing a LEED program, as well as other enhancements, which we believe will be important to our customers.”
For over 25 years, Phoenix has provided effective, operationally focused solutions for middle market companies in transition. Phoenix Management Services provides turnaround, crisis and interim management, specialized advisory and operational due diligence services for both distressed and growth oriented companies. Phoenix Capital Resources provides seamless investment banking solutions including M&A advisory, complex restructurings and capital placements. Phoenix Capital Resources is a U.S. registered broker-dealer and member of FINRA and SIPC. Proven. Results.®
Visit www.phoenixmanagement.com & www.phoenixcapitalresources.com
About FirstCity Crestone LLC
FirstCity Crestone LLC (www.fccrestone.com) is a special situation investment company with a broad mandate to invest in a variety of lower middle market assets. FirstCity Crestone emphasizes rapid response and closing times, creative solutions, and flexibility in deal structure. The principals of FirstCity Crestone have invested in all types of industries and asset classes and have deep experience with corporate restructuring and distressed debt.
About Regional Rail, LLC
Regional Rail, LLC (www.regional-rail.com) acquires and operates shortline, regional railroads and switching services in the United States. Formed in 2007, Regional Rail currently consists of East Penn Railroad, Middletown & New Jersey Railroad, and Tyburn Railroad.
CONTACT: Michael Jacoby