Riedel Environmental Technologies, Inc.

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 due to slower than expected spending in the remediation of U.S. Department of Defense and Department of Energy sites and weak enforcement of environmental regulations in the commercial sector. As a result, Riedel faced a severe cash crisis.

Riedel engaged Gordian Group to assist in restructuring its debt. Recognizing that Riedel was within days of liquidation (which would likely have generated insufficient proceeds to cover the face amount of the secured debt and left nothing for the bondholders and other unsecured creditors), 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.

By running a skillful and competitive process, 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.

Further, 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.