MorrisAnderson Fixing Environmental Issues Leads to Going Concern Sale
25M
Annual Sales
10M
in Debt
OGM - Clean Water Ltd., Columbus Ohio
Challenge
3 Waste Water Treatment facilities. $25 million Revenue. $10 million Secured Debt. Environmental and Liquidity Issues. Ohio State Court Receivership.
- Waste water treatment company that removed impact oil and other material from water and through other treatment methods
- Reclaimed oil sales, a byproduct of treatment, was effected by falling oil prices
- Numerous potential environmental issues and regulatory violations that needed immediate attention
- Lack of liquidity and concerns by the secured lender caused the company to enter into a state receivership proceeding
- Customers were exiting because of the receivership
- Critical safety equipment and environmental barriers where failing
Solution
- MorrisAnderson stabilized the company through cost cutting, elimination of oil operations and other selective sales efforts
- Stabilized exit of customers and maintained consistent revenue through the entire 2 years of receivership
- Negotiated and resolved all active violations and implemented corrective actions for environmental regulators including the EPA, RCRA and local agencies
- Replaced environmental equipment deficiencies and implemented capital improvements to correct failing critical safety equipment
- Conducted a sales process and brought three potential strategic buyers to the secured lender
Results
- Secured lender purchased the company with a credit bid
- The company was sold with no outstanding environmental violations
- Avoided potential costly environmental remediation and facility shut down risk for the buyer/lender
