Phoenix winds down and liquidates the assets of a aluminum pole manufacturer exceeding expectations with the lender repaid in full.
The Company was a $30 million Manufacturer of Aluminum Utility Poles based in New Jersey.
The Company 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 the Company into a Chapter 11 liquidation. A lender had a credit facility secured by all assets of the Company, including valuable equipment that was located on an environmentally-challenged site in Newark, NJ. Even though the Company 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, the lender, and the U.S. Bankruptcy Trustee to resolve the resolution of the environmental claims and the ultimate release of the equipment for sale. The lender was eventually repaid in full, which exceeded its expectations.
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