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

A key point in RCC Consultants’ bankruptcy saga could be determined this week, when the consulting firm’s business and assets could be bought by Black & Veatch (B&V) for a purchase price between $3.1 million and $3.5 million, according to a motion filed by RCC Consultants in its bankruptcy court.

“The decision to proceed with B&V’s offer was based on its being the highest offer—in terms of dollars—and the best offer—in terms of favorable terms and conditions—received by the Debtor [RCC Consultants],” the RCC Consultants motion states. “Among other considerations, B&V’s offer will enable the transitioning of employees from [RCC Consultants] to B&V. It will also provide the greatest amount of funds to the estate to satisfy creditor claims.”

Black & Veatch would purchase only the assets of RCC Consultants, free and clear of all of the liens and other claims associated with them in the Chapter 11 bankruptcy proceeding, under the terms included in the motion.

“The exact purchase price shall be determined at or before closing, depending upon the accounts receivable which are ‘acceptable’ by B&V,” the RCC Consultants’ motion states, in a footnote. “In short, B&V is paying for the amount/value of ‘acceptable’ accounts receivable, plus $1 million.”

In the motion, RCC Consultants proposed that the asset sale be closed on or before this Friday, noting that “time being of the essence” to resolve its bankruptcy situation. After the sale of its assets is complete, RCC Consultants “will file a Chapter 11 plan of orderly liquidation,” according to the motion.

Black & Veatch was one of three companies that submitted bids for the RCC Consultants’ assets earlier this month; the other bidders were Baruzzini and Mission Critical Partners. Baruzzini, Mission Critical Partners and any other company would be allowed to indicate today whether it would submit a bid that is at least $100,000 greater than the Black & Veatch proposal, according to the motion.

If an additional bid is proposed, the motion calls for an auction to be conducted tomorrow morning, with RCC Consultants selecting the winner by 5:00 p.m. tomorrow. A hearing to authorize the sale would be conducted in the U.S. Bankruptcy Court for the District of New Jersey on Thursday.

If RCC Consultants is able to sell its assets for the price 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 the motion. Other secured creditors mentioned in the motion are TD Equipment Finance, Dell Financial Services, GreatAmerica Financial Services and Ascentium Capital.

When contacted by IWCE’s Urgent Communications about the potential purchase of RCC Consultants assets, a spokesman for Black & Veatch provided a prepared statement.

“Black & Veatch has been in business discussions with RCC Consultants concerning its operations,” according to the statement. “As a provider of public-safety network services, RCC has core competencies that align well with the range of solutions we provide. Since no agreements have been finalized, it is our policy not to provide additional details at this time.”

RCC Consultants decided to sell its assets and liquidate the company after efforts to reorganize the consulting business failed, according to the motion.