Daily News: June 28, 2012

Phoenix Completes the Sale of Conshohocken Rail

Phoenix Management Services, acting as receiver, through its affiliate PMCM, LLC, successfully marketed and sold the assets of Conshohocken Rail, LLC (CR) on June 1, 2012 to Conshohocken Recycling & Rail Transfer, LLC (CR&RT), a subsidiary of Regional Rail, LLC, a holding of FirstCity Crestone.

Phoenix had operated CR, a construction demolition and debris (CD&D) waste transfer station located in Conshohocken, PA, since April 1, 2010, when it was appointed to serve as receiver by the Court of Common Pleas of Montgomery County, PA. During this period, Phoenix successfully 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.

Bob Parker, president of Regional Rail, added, “we are enthusiastic over the opportunity to grow the company’s business. We plan to grow the business by implementing a LEED program, as well as other enhancements, which we believe will be important to our customers.”

Phoenix Management Services provides turnaround, crisis and interim management, specialized advisory and operational due diligence services for both distressed and growth-oriented companies.

FirstCity Crestone is a special situation investment company with a broad mandate to invest in a variety of lower middle-market assets.

Regional Rail, LLC acquires and operates shortline, regional railroads and switching services in the United States.