Most Unique C/I Transaction - 2006

Philip Pelok, CB Richard Ellis
Todd Greiner, CB Richard Ellis
Mike McNulty, CB Richard Ellis
Mike Mullady, CB Richard Ellis

In September 2004, Techneglas, Inc. a wholly-owned subsidiary of Nippon Electric Glass Co. and the largest manufacturer of television glass in North America, filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code.

CB Richard Ellis and our award recipients were selected to execute and dispose of a 1.3 million square foot manufacturing facility outside of Philadelphia. But it was going to be sticky as they had to navigate the complex and demanding bankruptcy requirements and environmental issues.

The environmental issues included eight underground storage tanks and 27 mine shafts, several of which had been used for dumping over the years.

Nonetheless, they procured ten prospective purchasers willing to become the "stalking horse" bidder in an auction. Unfortunately, the bankruptcy court was unwilling to enter into contingent long term contracts. And due to the environmental issues, this requirement eliminated most market rate buyers.

But, after a great deal of collaboration, our team was able to get a buyer to work with a Section 351 tax-free exchange which allowed the purchaser to acquire the facility and take on the entire environmental obligation.