Activated Carbon processing facility & biomass power plantIn Hawaii hit the auction block
Tuesday, Mar 11, 2014

KAWAIHAE, Hawaii, March 10, 2014 /PRNewswire/ -- By order of the U.S. Bankruptcy Court, Tiger Group's Remarketing Services Division and Aaron Equipment Company Inc. are liquidating an activated carbon processing facility and a biomass power plant formerly owned by Big Island Carbon LLC and its affiliates. Located in Kawaihae on the west side of the Big Island of Hawaii, 35 miles north of Kailua-Kona, the assets are being marketed in a sealed bid offering that closes at 5:00 p.m. (PT) on April 4. The sale is being conducted under the direction of bankruptcy trustee Charles A. Stanziale of McCarter & English, LLP.

"Companies involved in the activated carbon industry and in sustainable biomass energy will be interested in this facility, which is initially being offered as a complete facility," said Jeff Tanenbaum, President of Tiger Remarketing Services. "The Big Island plant was built to crush, size and char locally-grown macadamia nut shells, and then activate the charred products in a 'green,' non-chemical manner. The on-site biomass power plant is equipped to support the facility with energy generated from pyrolysis oil synthesized by the process "

More than $40 million was invested in the facility, developed by Denham Capital Management, but funding was cut off before the plant could begin full production. The company filed for Chapter 7 bankruptcy on November 5, 2012 in the Delaware Bankruptcy Court (case number 1:12-bk-13023). According to former management, the facility initially produced and tested a high grade of activated carbon.  During that preliminary phase, the company also identified the steps and costs necessary to ready the operation for full production,  said Tanenbaum.

The site is located on approximately 14 acres in an industrial zoned area, leased from the Department of Hawaiian Home Lands. The facility has received all required construction and operating permits, including the Title V air permit for the power plant. Big Island Carbon has also received all required operating permits.

The location offers easy highway access to the Kawaihae Port and its fuel depot and shipping terminal, facilitating transportation of the activated carbon product to Los Angeles at a cost of less than 10 cents per pound, according to former management's business plan.

To support the activated carbon thermal process operation, the facility features equipment acquired at a cost of over $14 million (exclusive of shipping and installation costs), including a 40-foot Bartlett-Snow Rotary Calciner and a 2,000 gallon Alstom Power Char Converter Reactor.  The power plant includes a 1,825-kw Cummins reciprocating diesel engine generator set with an SCR for NOx reduction, and a steam turbine, manufactured by Elliott Ebara, which was previously installed at a West Virginia facility but never commissioned. The turbine operates at 5,620 rpm and is connected to an 1800 rpm, 480 volt generator, via a gear reducer. Steam for both the turbine and the process facility is produced in a Cleaver Brooks D style package boiler rated to produce 22,000 lb. /hr. of 600 psig 640°F superheated steam.  A complete list of equipment at the plant is available through Tiger.

To comply with the Bankruptcy Court Order, the facility must be sold – the only question is whether Tiger and Aaron will find an operator, as opposed to selling the facility for its parts.  "Our firm was very successful in 2013 in securing turnkey operators for dormant facilities; this is always our top priority," Tanenbaum noted. "The ability to purchase this facility at distressed asset value creates a huge opportunity for the right company ready to act."

About Tiger Group

Tiger Group provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. With over 40 years of experience and significant financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, provide capital or convert assets to capital quickly and decisively. Tiger's collaborative, straight-forward approach is the foundation for its many long-term 'partner' relationships and decades of success. Tiger operates main offices in Boston, Los Angeles and New York. To learn more about Tiger, please visit www.TigerGroup.com.

SOURCE Tiger Group

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