Case Studies

CRO for Chemical Processor

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

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The Situation

Chemical processing for use in the coal industry. $50 million in sales. $5 million debt. Freedom released the chemical MCHM from a ruptured storage tank into the Elk River, contaminating the public water supply and affecting over 300,000 residences in Charleston for 10 days.

  • The release of over 10,000 gallons of the chemical MCHM into the public water supply caused an environmental crisis for the company and the state of West Virginia.
  • The City of Charleston was unable to use the public water supply for ten days, which created enormous public and political pressure.
  • The company was unable to sustain ongoing operations and manage the massive mobilization of government regulatory agencies, political action groups, and emergency relief and cleanup groups.
  • The company had two sister companies, both of which were at risk of ceasing to operate as a going concern.
  • The company’s management was under Federal investigation, and customers were pulling their business.
  • The company was at full inventory capacity, anticipating the busy seasonal cold treatment, and government officials were requiring the liquidation of all materials from the facility.
  • The Governor issued a Consent Order, along with a strict operating and environmental remediation process.

How We Advised

  • The company filed for Chapter 11 and appointed our experts as CRO.
  • Immediately started working with customers to fulfill orders and sell inventory.
  • Created a remediation plan for the site and worked through various government approvals.
  • Sold the two unaffected companies as going concerns.
  • Processed over 6 million gallons of impacted water from the site, dismantled all holding tanks, removed impacted soil, liquidated remaining chemical supplies, and negotiated final solutions with all regulators.
  • Created a public relations plan to report progress and public transparency.
  • Generated over $23 million in six months through sales and was able to self-fund the entire clean-up and remediation.
  • Completed the remediation while liquidating all assets.
  • Maintained bankruptcy court, public, and regulatory support through the entire process, which allowed for the environmental cleanup in less than a year and a half.

Key Contact

Mark J. Welch, CPA, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 412 498 8258 
[email protected] 

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