Sayreville and Perth Amboy, NJ; Cincinnati, OH; Camden, AR; Memphis, TN; New Orleans, LA

Size

255 acres (total portfolio)

255 acres (total portfolio)

Landfills, PCB’s, UST’s, soil and groundwater contamination, Natural Resource Damages

Reuse

Perth Amboy, NJ – 40 acres;
   Google Earth image, Google Maps
Sayreville, NJ – 23 acres;
   Google Earth image, Google Maps
Cincinnati, OH – 27 acres;
   Google Earth image, Google Maps
Camden, AR – 61 acres;
   Google Earth image, Google Maps
Memphis, TN – 15 acres;
   Google Earth image, Google Maps
New Orleans, LA – 17 acre batture
   Google Earth image, Google Maps>

Project Background

At its peak, Celotex and its parent company, Jim Walter Corporation was the nation’s largest building materials manufacturer and produced such products as insulation, wallboard, roofing shingles and many other products for both commercial and residential use. Carey Canada, a wholly owned subsidiary of Celotex, was formerly engaged in the mining, milling and processing of asbestos fiber. As a result of asbestos litigation Celotex filed for bankruptcy in 1998 and emerged in 2002 after creating the Celotex Asbestos Trust to service ongoing asbestos claims. After emerging from bankruptcy, Celotex was responsible for closing its operations and liquidating its existing assets. Under its corporate by-laws, Celotex was responsible for addressing all liabilities prior to termination of operations. Saddled with numerous environmentally distressed assets, Celotex turned to BRG for the solution.

BRG Solution

In 2005, BRG purchased all of the remaining Celotex assets which were located in New Jersey (2), Arkansas, Ohio, Tennessee and Louisiana. All but one of the properties were former large manufacturing facilities with an average size of 35 acres. Under the terms of the sale, BRG also assumed all environmental liabilities associated with the properties and provided Celotex an indemnification. The transaction allowed Celotex to divest all its assets and liabilities associated with the properties and meet the requirements of its corporate bylaws. To strengthen the indemnity, BRG purchased a comprehensive pollution liability environmental insurance policy for the property through a large, well known insurance company that provides coverage for on- and off- site cleanup of pre-existing conditions and third-party claims for on- and off- site bodily injury and property damage. The 10-year term policy has a limit of $20 million.

BRG has sold three of the properties and continues to remediate each of the remaining sites in an effort to reposition the properties for resale or redevelopment