Black & Veatch bids more than $3 million to buy RCC Consultants assets out of bankruptcy as early as this week

One of the best-known consulting organizations in the critical-communications industry, RCC Consultants filed for Chapter 11 bankruptcy less than three months ago, citing several failures to meet payroll and business-expense obligations to employees—matters totaling more than $2.5 million. In addition to the secured claims mentioned previously, the original bankruptcy filing noted that RCC Consultants owes more than $1.5 million to its top 20 unsecured creditors, with American Express having the largest listed claim of $416,224.46.

RCC Consultants cited several issues that caused the company to seek bankruptcy relief in court documents.

“In sum, tepid economic growth in the United States, financial stress on states and local governments, reduced federal funding for interoperable voice radio systems, and uncertainty regarding the future course of public-safety communications combined to weaken the market for RCC’s core consulting services,” the RCC Consultants spring filing states.

“Consequently, after a record profitable year in 2012, RCC saw operating losses in 2013 and 2014. Increased competition for a smaller pool of potential business (given the slowdown in land-based mobile communications system investment) was also a major factor.”

Indeed, several companies in the LMR sector have cited a significant slowdown after many customers revamped their networks to comply with an FCC mandate to narrowband their LMR systems by Dec. 31, 2012.

Although RCC Consultants hoped to reorganize its business via Chapter 11 bankruptcy, those efforts have failed, according to the company’s most recent court filings.

“Unfortunately, [RCC Consultants] was unable to reclaim profitability during the necessary post-filing timeframe and was unable to procure new funds, through refinancing or otherwise, thus necessitating the marketing and proposed sale of the assets,” the RCC Consultants asset-sale motion states.