Equity Partners HG brokers sale of BTH Quitman Hickory LLC Pellet Mill to Mohegan Renewable Energy
For Immediate Release | November 16, 2018
Mohegan Renewable Energy was the winning bidder for a shutdown white wood and torrefied pellet mill owned by BTH Quitman Hickory, LLC in an auction held on October 22, 2108 in the United States Bankruptcy Court for the District of Nevada, Reno Division. Since coming online in 2009, The Quitman plant has produced over 75,000 tons of torrefied material and is the first commercial scale torrefaction facility located in the US. While torrefied wood pellets are an immediate and practical replacement for coal, able to integrate easily into existing coal power plants without lengthy or expensive conversions, 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. Unfortunately, due to oversupply, the price per ton for white wood pellets continued to decline forcing operation to close down in March of 2016 (torrefaction production ceased in December of 2016). When BTH Quitman Hickory filed for Chapter 11 bankruptcy protection in December of 2017, Equity Partners was hired to seek a buyer for the facility. After an exhaustive marketing campaign, Mohegan Renewable Energy submitted the highest and best bid.
Hank Waida, a Managing Director at Equity Partners HG, stated “Both the buyer and creditors have worked extremely hard coming to agreement on a purchase price better than liquidation, while at the same time allowing Mohegan to make the necessary investment in the plant to bring it back online”.
Other professionals who worked on the transaction include: