"As Is" Contaminated Property Transfer
Large multinational corporation divested a significant portion of their owned real estate. Many of the properties are affected by environmental conditions requiring long term resolution. The business priority for the manufacturer was to enter into the transaction in the near term and transfer the properties "as is", providing funding for an interest bearing escrow account to pay for the long term resolution of the liabilities. The buyers' business priority was assurance that the environmental liabilities they were assuming were sufficiently funded and that a credible remedial plan and responsible collateral structure was established and implemented.
Mr. Donnellon led the effort for a number of similar transactions to develop the remedial work plan and negotiate a milestone payment schedule and fixed price remediation contract with a nationally recognized environmental consulting engineering firm. Mr. Donnellon then arranged for the environmental insurance placement in collaboration with the buyer's insurance broker and environmental insurer. Mr. Donnellon also collaborated with in house and outside counsel to develop and finalize the liability assumption agreement and remediation escrow agreement, and continued to manage project implementation following completion of each property transfer.
Unique Resolution of Contentious PRP Litigation
West Coast PRP (potentially responsible party) group including several Fortune 500 members had been engaged for many years in a non- productive litigation pertaining to a TCE contaminated groundwater plume. Mr. Donnellon led the effort to develop a liability assumption transaction which enabled a comprehensive settlement to be achieved, and resulted in significant cost savings for all of the parties involved.
The liability assumption transaction involved developing a remedial work plan which combined active remediation with long term monitoring and was funded accordingly through separate 468B qualified settlement trust funds.
Mr. Donnellon collaborated with the mediator, as well as in house and outside counsel for the PRP group to arrange insurance, develop and finalize the liability assumption agreement and trust, and continued to manage project implementation on behalf of the liability assumption entity after closing of the transaction.