Schafer and Weiner, PLLC Closes Going Concern Sale of Company Operating in Federal Equity Receivership, Benefitting Pensioners and Saving Jobs in Western Michigan

Joseph K. Grekin and Jason L. Weiner of Schafer and Weiner, PLLC, with court authority, closed the going concern sale of the assets of Evans Tempcon, Inc. in Grand Rapids, Michigan. The company engineers and manufactures HVAC systems for recreational, agricultural, and other off-road vehicles. Evans Tempcon Michigan, LLC purchased the company’s assets, and intends to continue operating in Grand Rapids.

In April 2015, the U.S. District Court for the Western District of Michigan entered an order appointing a Federal Equity Receiver over the company and its assets at the request of the Pension Benefit Guaranty Corporation (PBGC). S&W worked with the PBGC to help craft a receiver order giving the Receiver the necessary powers and protections to effectively operate and sell the company’s assets.

S&W guided the Receiver through a complex court process toward a successful sale of the company’s assets. Once the Receiver identified a need for cash, S&W assisted the Receiver in negotiating and obtaining a receivership loan, in the form of a revolving line of credit, from Crestmark Bank under loan documents that met the needs of the company and satisfied all of the PBGC’s requirements. The entire Receiver team worked to stabilize and operate the company, and prepare it for sale. S&W and the Receiver crafted a marketing and sales process that resulted in a successful auction. S&W obtained court authority to sell the company’s assets with support from all interested parties, and consummated a sale that ensured payment in full to the bank and preserved most of the company’s employees’ jobs.

The Receiver and all of the professionals, including S&W, were often praised by the Court at hearings on the record.