Interturbine Corporation was a Dutch-owned specialized aerospace repair and manufacturing company. When the company initiated the winding up and sale of its operations and real estate assets, complications from environmental contamination, long clean-up time frames, and exposure to an unquantifiable liability slowed the process. Further complicating the transaction, a life insurance company wished to divest of two operating buildings they owned located on the Interturbine properties. To address these challenges, Brownfield Partners created a multi-tiered transaction that included transfer of real property, environmental liabilities, and cleanup responsibility to a third-party, allowing Interturbine to complete winding up.
Through a complex, four-party transaction, a Brownfield Partners subsidiary acquired two industrial buildings in suburban Dallas, Texas including the assuming responsibility the environmental cleanup responsibility and liability on the properties. The operations at these locations, which had separately been purchased by Pratt & Whitney a subsidiary of United Technologies Corporation, remained in place on the sites under long-term leases. As part of the transaction a third property was purchased from UTC and the environmental liability at a fourth location, with another P&W operation was contractually assumed. The sites were all successfully remediated on an expedited basis under the auspices of the Texas Commission on Environmental Quality (TCEQ) and all three properties were profitably resold.