Remarketing Examples
Power Generation
PROJECT:
81MW simple cycle gas-fired Westinghouse W501-B4 electric generation facility designed and equipped for peaking and intermediate service operation. Equipment had been maintained in fair condition.
WORK SCOPE:
Researched and reviewed: equipment condition, operating and maintenance protocols of the Lessee/Operator, dispatch order, fuel supply contracts, and regulatory status of operating assets. Estimated current market value and evaluated disposition opportunities. Developed sale strategy, offering memorandum, and contact list for prospects. Implemented remarketing campaign.
RESULTS:
IMA LLC faced a limited number of buyers interested in these power generation assets because they were older, smaller, and less efficient. Lessee was not the buyer, and the Lessee actively worked against IMA LLC to slow our auction process. IMA LLC nevertheless achieved a gain for the client while completing the sale of all assets in less than 4 months.
CONCLUSION:
Straight sale.
Maritime Assets (Inland Barges)
PROJECT:
Remarketed and sold ownership interest in 39 open hopper coal barges. IMA LLC responsible for entire remarketing process, including Lessee notice provisions and related requirements.
WORK SCOPE:
Researched and prepared remarketing materials for the leased equipment. Contacted interested parties. End of Lease negotiations with Lessee. IMA LLC responsible for managing the equipment re-lease program.
RESULTS:
IMA LLC achieved a 55% “excess” recovery compared with the client’s book value and residual exposure at Lease end.
CONCLUSION:
Straight sale. IMA LLC works with client on other portfolio assets.
Rail
PROJECT:
Provided remarketing services to Lessor/Owner of 147 CF Model 5800 LT center flow covered hopper cars (manufactured by ACF in 1987) and one EMD Model MP15T 1,500hp yard locomotive.
WORK SCOPE:
Researched and prepared remarketing materials for the leased equipment. IMA LLC contacted 5 interested parties, and negotiated with 3 (including Lessee) to sell Equipment. IMA LLC actively managed enforcement of all Return Provision conditions with Lessee. IMA LLC reviewed on condition appraisal procedures, and on-site technical inspectors.
RESULTS:
IMA LLC achieved a 57% “excess” recovery compared with the client’s book value and residual exposure at Lease end.
CONCLUSION:
Straight sale. IMA LLC works with client on other portfolio assets.
Corporate Aircraft
PROJECT:
Resolved client’s residual concerns with sale and leaseback financing transactions for two Gulfstream G-IV corporate aircraft. Goals for the client were to move the assets off balance sheet, provide utilization flexibility, and achieve positive cash and earnings results.
WORK SCOPE:
Structured single investor lease financings (total of $36.5 million) for both aircraft within 40 days of being engaged by client. Solicited a broad range of sources, and secured 3 competitive bids from reliable financing sources in difficult credit markets. Engaged appraiser and technical experts to ensure timely completion of data collection and tests as required by the Lessor.
RESULTS:
Closed both financings prior to year-end. Ensured considerable flexibility for the client in relation to future use of the equipment. On behalf of the client, IMA LLC negotiated subsequent assignment and transfer issues.
CONCLUSION:
IMA LLC works on operations management issues for the aircraft.