Case Study

Riedel Environmental Technologies

CLIENT: Riedel Environmental Technologies

Gordian Group served as financial advisor to the company in its successful sale outside of bankruptcy.

Situation

Through a series of acquisitions financed largely with debt, Riedel expanded its business to become a vertically integrated provider of environmental services. In the 1990’s, Riedel’s operating performance had significantly declined.

Engagement

Riedel engaged Gordian Group to assist in restructuring its debt. Gordian Group convinced the senior secured creditor to extend additional credit to enable the Company to conduct a sale of substantially all of its assets. Gordian Group was able to assist Riedel in selling its primary operating business outside of Chapter 11 at a highly advantageous price, thereby maximizing the recovery for both secured and unsecured creditors. Gordian Group also provided the Company with a fairness opinion regarding this complex sale effort, which involved multiple competing bidders using different forms of consideration.

Outcome

The sales effort produced sufficient value so that old equity holders were able to obtain a recovery, even though creditors received less than 100 cents on the dollar.