Former Paper Mill - Purchase out of Bankruptcy

Our client was considering submitting a competitive bid to the bankruptcy courts to purchase an out-of-service paper mill. While he understood his operational costs associated with retrofitting and bringing the paper mill on line, he could not quantify his potential environmental costs, which he knew

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 could be considerable because a substantial amount of chemicals had been left on-site, including approximately 15,000 gallons of fuel oil from a past spill and asbestos pipe insulation. After discussing his needs, we proposed performing an initial limited site investigation to provide him with a more accurate estimate of his potential remediation costs. During the investigation we discovered a solid waste landfill which had never been closed on a portion of the property. We delineated its boundaries and provided an estimate of closure costs. Based on this information, our client decided to eliminate the landfill portion of the property and bid only on the remaining portion. His bid was successful in obtaining the facility.

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Case Study

OBJECTIVE
  • Determine most likely remediation costs for inclusion in bid

FACTS
  • Bankrupt paper mill
  • Unidentified landfill
  • Known but not quantified environmental liability

STRATEGY
  • Perform limited sampling and delineation of suspect areas

RESULTS
  • Successfully excluded landfill from purchase
  • Paper mill became operational
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