Brownfield Management and Disposition Consulting, Detroit, MI
General Motors Corporation (GM) entered into Chapter 11 bankruptcy in June 2009 in a case that was one of the largest and most complex environmental bankruptcies in U.S. history. AlixPartners L.L.P., an international corporate turnaround and financial advisory firm, was charged with leading GM (renamed Motors Liquidation Company [MLC]) through its Chapter 11 bankruptcy plan to sell assets, and restructure its debt.
The Principals of RE|Solutions, LLC worked as expert consultants to Motors Liquidation Company (MLC) and Alix Partners on matters relating to real estate management, reuse and redevelopment; regulatory strategy, negotiation and settlement; and environmental risk management on legacy manufacturing plants and other properties retained in the bankruptcy. There were 89 individual legacy assets under management in the bankruptcy estate, which included over 7,000 acres of land and 48 million square feet of buildings located in 14 states.
The RES Principals’ role included: supporting MLC in the on-going management of legacy properties; negotiating remediation agreements with state regulators and EPA; assisting in the estimation of total environmental liabilities; formulating environmental risk management structures using both financial and insurance instruments to manage the costs and environmental risks of the portfolio; and developing strategies to maximize the reuse/redevelopment opportunities at the properties.
The consensus reached with state regulatory agencies and EPA regional and headquarters staff regarding cleanup plans and costs facilitated the resolution of over $450 million in governmental cleanup cost claims.