The Company

BTH Quitman Hickory LLC

Mississippi based white wood and torrefied pellet mill. Since coming online in 2009, the facilty produced 75,000 tons of torrefied material and was the first commercial scale torrefaction facility located in the US.

The Challenge

While torrefied wood pellets are an immediate and practical replacement for coal, white wood pellets are a more common replacement in coal fired operations. Because of this, in 2014, management decided to focus on producing white wood pellets and to sell into that market while continuing to develop the torrefied product and market. Due to oversupply, the price per ton for white wood pellets continued to decline forcing operation to close in March of 2016 and the file for Chapter 11 bankruptcy protection.

The Process

Equity Partners was retained and conducted an exhaustive marketing process. Through our process, over 30 companies signed confidentiality agreements and considered investing in or acquiring the facility.

The Solution

Following in-depth negotiations on behalf of the seller, Equity Partners HG was able to put together a transaction with Mohegan Renewable Energy that practically doubled their initial offer. We also and worked with five creditors groups establishing a distribution of funds agreeable to all. A sale to Mohegan Renewable Energy was approved by the court and closed shortly after.