Jul 14

Goetz Fitzpatrick provides counsel in sale of Canal Asphalt to Peckham Industries

Attorneys Gary M. Kushner, Donald J. Carbone, Aaron Boyajian, and Scott D. Simon acted as counsel to Canal Asphalt, Inc. in the sale of its assets to Peckham Industries, Inc. The transaction closed in June 2016.

Canal owned and operated an asphalt plant located in Mount Vernon, New York. The plant had capacity to produce in excess of 300,000 tons of various asphalt mixes per year and its customers included contractors of the Department of Transportation for New York City and New York State, the New York City Department of Design and Construction, Westchester County municipal pavers, local parking lot and driveway paving companies and local utility companies such as Con Edison and Verizon.

Canal had operated profitably since 1986. In 2013, its primary customer began to experience economic difficulty. The resulting operating losses and inability to replace sales from this core customer forced Canal to file for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York in July, 2015. Canal had secured a stalking horse bidder in conjunction with a plan of reorganization but the Bankruptcy Court required the Debtor to run a simultaneous sale process to market test the plan valuation.

SSG Capital Advisors, LLC was engaged as the exclusive investment banker to run the sale process and solicit competing offers. SSG’s marketing process resulted in a highly competitive and robust auction where the offer from Peckham was ultimately deemed to be the highest and best for substantially all of Canal’s assets, maximizing value to stakeholders.

Peckham engages in the production and distribution of construction materials. It offers asphalt pavements, aggregates, asphalt binders, emulsions, liquids and ready-mixed concrete.

Learn more about Goetz Fitzpatrick’s Bankruptcy & Business Reorganization Practice.

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