Thursday, June 28, 2012

Phoenix completes the sale of Conshohocken Rail to FirstCity Crestone subsidiary

Phoenix Management Services, through its affiliate PMCM, LLC, sold the assets of Conshohocken Rail, LLC, on June 1, 2012, to Conshohocken Recycling & Rail Transfer, LLC, a subsidiary of Regional Rail, LLC, a holding of FirstCity Crestone LLC.

Phoenix had operated CR, a construction demolition and debris waste transfer station located in Conshohocken, Pa., since April 1, 2010, when they were appointed to serve as receiver by the Court of Common Pleas of Montgomery County, Pa. During this period, Phoenix stemmed CR's cash operating losses and maintained operations.

The protracted time between CR being placed in receivership and the sale of its assets was due to a number of factors, including environmental due diligence and time required for CR&RT to obtain required approvals from the Pennsylvania Department of Environmental Protection.

"It was a challenge to operate the company during this period of economic uncertainty given the dampening impact on new construction that feeds CR's volume. However, by maintaining a high level of customer service and competitive pricing, we were able to maintain adequate volume in order to operate the company through the sale of its assets to CR&RT as a going concern, retaining the jobs for the area," said Rick Szekelyi, Phoenix managing director.

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