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Helping Clients Perform Lease Termination Obligations
Purchase of 600,000 Gallon Tank Farm - Alabama, USA
Our client, a major multi-national chemical company, made a strategic decision to discontinue storing finished product at a leased site in Alabama. The site contained over 600,000 gallons of tanks. As part of their obligations under the lease, our client had to not only remove their equipment but also certain above ground structures including large concrete retaining walls that were over 2 ft thick and 20 ft tall. Phoenix Equipment offered a turn-key solution in which we purchased all of the above ground assets, which included stainless steel storage tanks, centrifugal pumps, and a scrubber system. Further, as part of our purchase we absorbed the entire cost of removing the retaining walls, gutting the process building so it could be re-utilized as a warehouse, and surgical demolition surrounding an truck unloading station so that a new tenant could utilize the site for their needs.
Phoenix Equipment mobilized the site in April 2008 and safely completed all work by September 2008. We utilized our own machines and supervisors, operators and laborers to perform the work. In the end, our client did not have to spend significant time and resources to deal with clean-up activities required under their lease termination.