TRC Companies, Inc. has been awarded a $5.1 million Exit Strategy®contract to provide a comprehensive environmental liability transfer solution to a manufacturing client in the San Francisco Bay Area.
Under the terms of the contract, TRC has assumed the clean-up obligations at the client's former manufacturing complex in order to facilitate the sale of the client's assets to a private equity firm, eliminating future clean-up risks to either business. The site cleanup involves the mitigation of volatile organic compounds in groundwater at and surrounding the site.To support TRC's assumption of remedial obligations, a Remediation Cost Cap Policy was issued to protect TRC and its clients against clean-up cost overruns.
TRC's Exit Strategy Program relieves corporate and public entities of their environmental clean-up obligations forever, at a single fixed price.TRC has delivered Exit Strategy solutions to more than 100 sites involving in excess of $545 million in clean-up costs backed up by $1.3 billion in insurance, and is the recognized industry leader in providing environmental liability transfer solutions.Over the past 11 years, TRC's clients have used Exit Strategy to resolve the uncertainty caused by environmental clean-up obligations allowing them to unlock the value of impaired assets.
Typical applications of the program include: (1) bankruptcy; (2) facilitating mergers, acquisitions and divestitures, including property sales, which might not otherwise occur because neither the buyer nor the seller wishes to be responsible for past environmental issues; (3) assuming responsibility for multi-party cost recovery or "Superfund" sites where the differing interests of a large number of potentially responsible parties result in extended project schedules and legal and administrative costs that significantly increase the life-cycle costs of site remediation; (4) relieving customers of the burden of maintaining environmental compliance support to closed or sold facilities; and (5) developing "brownfield" real estate sites by resolving environmental issues that have a significant impact on property market value.