Black & Veatch buys assets of RCC Consultants for $3.1 million

The potential $3.1 million payout is within the $3.1 million to $3.5 million range that Black & Veatch proposed to pay in a July 17 filing. Although the bankruptcy court arranged for other suitors to submit bids for RCC Consultants last week, there were “no competing bids” to the Black & Veatch offer, according to court documents. The actual total paid by Black & Veatch could vary, based on the accounts receivables that can be collected.

With the payout proposed by Black & Veatch, there should be enough funds available to repay $1.982 million to TD Bank, RCC Consultants’ largest secured creditor, according to a motion filed in July. Other secured creditors mentioned in the motion are TD Equipment Finance, Dell Financial Services, GreatAmerica Financial Services and Ascentium Capital.

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.

One of the best-known consulting organizations in the critical-communications industry, RCC Consultants filed for Chapter 11 bankruptcy on May 1, citing several failures to meet payroll and business-expense obligations to employees—matters totaling more than $2.5 million. Black & Veatch will have the ability to hire existing employees of RCC Consultants, but it will not be obligated to rectify any claims that the employee may have against RCC Consultants regarding lost payments or benefit, according to the terms of the deal.

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

“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 motion states.