Client: Senior Secured Lender
Challenge: Support Liquidation Valuation in Bankruptcy Court
A secured lender for a family-owned, fully integrated pulp and paper mill in northern New England asked AccuVal to prepare an appraisal to be used for the purposes of bankruptcy. AccuVal was also asked to assist in liquidating its two paper mills, along with the real estate, machinery and inventory.
As is often the case, successfully selling paper mills involves careful consideration of environmental concerns relating to the proper handling and disposal of chemicals used in the manufacturing process. Because the company was one of the largest employers in the region, all activities relating to the disposition of the mills received intense scrutiny from the Department of Environmental Protection (DEP), the Environmental Protection Agency (EPA) and the governor's office.
A successful liquidation would be measured not just in gross dollars returned to the lender, but also in AccuVal's ability to manage the expectations of the government entities. Both state and federal environmental protection agencies were apprehensive about the safe handling of the chemicals. The governor's office was concerned about preserving the facilities so that operations could be restarted and jobs saved. And the secured lender hoped to not only recover the value of its collateral, but also to avoid the legal costs of having to grapple with those governmental bodies in and out of bankruptcy court.
AccuVal's performance exceeded the expectations of all parties concerned. With the assistance of a strategic partner qualified to assess and remediate environmental hazards, all chemicals onsite were properly inventoried, documented and then marshaled for safe storage until they could be transported to an approved site for proper disposal.
Simultaneously, AccuVal maximized recovery on the paper inventory, arranging for its quick relocation offsite. In the meantime, sister company LiquiTec's efforts to find a buyer to purchase the pulp and paper mill and allow it to remain in operation were successful, preserving the majority of the jobs in the community.
By finding a buyer to continue operating the plant, LiquiTec helped the lender realize a substantially greater return than if the property and contents had been sold piecemeal for removal. Jobs were saved, environmental hazards were averted and the risk of lawsuits was eliminated.
Decades of experience in the paper industry. Expertise to sell both the business enterprise and underlying assets. Ability to manage conditions that are politically sensitive. Awareness of environmental hazards and the process required to insulate clients from this exposure. Experts at finding creative solutions that maximize return. That's The AccuVal AdVantage™ at work.