Tiger Commercial & Industrial Liquidation Update

Online Auction Features Entire Frac and Drilling Fleet from El Dorado Gas & Oil, Inc.

Closed on Dec. 10-11, the Tiger Group and Liquidity Services bankruptcy sale included frac pumps, trucks, truck tractors, cranes, lifts, oilfield equipment and other assets.

Tiger Group and Liquidity Services offered El Dorado Gas & Oil, Inc.’s frac and drilling fleet in a bankruptcy court-sanctioned liquidation. The two-day online auction featured Quintuplex and Triplex frac pumps, Peterbilt, Freightliner and Kenworth truck tractors and a wide range of additional industrial and oilfield equipment assets stored at the oil-and-gas company’s former South Texas site in Alice, Texas.

Day One lots closed starting on Tuesday, December 10, at 10 a.m. (CT). Day Two lots closed starting on Wednesday, December 11, at 10 a.m. (CT). Bidding opened on Tuesday, December 3, at 10 a.m. (CT) at SoldTiger.com.

“This is the largest sale to date in a series of El Dorado auctions, with a wide array of equipment that will be of interest to energy and drilling companies as well as truckers, fleet owners and users of general tools and equipment,” said Chad Farrell, Managing Director of Tiger Commercial & Industrial. “By court order, there is no buyer’s premium in this major liquidation. Buyers will have an opportunity to buy quality assets at a good price.”

Day One lots closed on December 10 included:

  • 37 trailers
  • 29 fluid ends
  • 3 winch trucks
  • drilling rigs
  • drilling equipment including subs, valves, elevators, BOP trailers
  • a wireline truck
  • large inventories of truck and frac equipment parts
  • radiators
  • perforating/logging systems
  • rigging equipment

Day Two lots closed on December 11 included:

  • 40 Quintuplex and Triplex frac pump trailers featuring Gardner Denver and SPM pumps
  • 23 Peterbilt and Kenworth truck tractors
  • 20 tanker trailers
  • 16 frac sand hoppers by Amber Waves, Inc.
  • 14 frac manifold trailers
  • 6 vacuum trailers
  • Oilfield floats and trailers
  • Welding trailers
  • Coiled tubing units
  • Storage containers
  • Cranes and lifts
  • Pipe
  • Drilling equipment

Gulfport, Mississippi-based El Dorado Gas & Oil, Inc. filed for Chapter 11 (Case No. 23-51715-JAW) this past December. The company held a diverse array of equipment at 37 locations, primarily in Mississippi and Texas, but also in Alabama, Louisiana, Nevada, North Dakota, Ohio, Oklahoma, Tennessee, Virginia, Wyoming, and other locations.

For asset photos, descriptions, and other information, visit:

https://soldtiger.com/sales/complete-liquidation-of-el-dorado-gas-oil-frac-and-drilling-equipment-fleet/

Battery Energy Storage Systems, IP and High-Utility Manufacturing and Testing Equipment Go to Auction

Tiger Group sale featured more than 150 lots from grid-edge tech startup Veloce Energy

In an assignment for the benefit of creditors, Tiger Group auctioned assets and intellectual property from grid-edge tech startup Veloce Energy on November 7.

“Veloce Energy is known for creating Fastgrid™—a platform geared toward more efficient deployment and operation of infrastructure such as EV charging stations, commercial solar installations and industrial storage facilities,” said Chad Farrell, Managing Director of Tiger Commercial & Industrial. “The company was part of the ‘grid edge’ tech movement, which focuses on modernizing the grid and accelerating the transition away from fossil fuels.”

The timed, online auction of assets from Veloce Energy’s Loveland facility—as well as IP that includes trademarks, logos and two provisional patents—closed on Thursday, November 7, at 10:30 a.m. (MT). Bidding opened on Thursday, October 31, at 10:30 a.m. (MT) at SoldTiger.com.

The online auction featured more than 150 lots of machinery and equipment and other assets. They included:

  • VPort Battery Energy Storage Systems (BESS)
  • Welders
  • Oscilloscopes
  • Oztec inverters
  • Test equipment
  • Transformers and power supplies
  • Forklifts
  • Tools
  • Parts

“This plant is extremely clean, with all tools and test equipment—including pieces by leading brands such as Agilent and Oztec—being late-model and in good condition,” Farrell said.

Companies in a wide array of sectors, not just the grid-edge space, could benefit from the manufacturing, assembly and testing equipment available in the sale, he added. “It’s an excellent buying opportunity.”

The online auction was the latest Tiger Group asset-disposition involving “green,” clean energy and/or EV-related companies. The list includes Romeo Power, AquaHydrex, and Lightning eMotors, to name a few.

“We’re seeing explosive creativity in these sectors,” Farrell said. “However, the competition for customers and funding is incredibly intense. It is not uncommon for startups with valuable and potentially game-changing technologies to simply run out of money, which appears to be the case with Veloce Energy.”

For asset photos, descriptions, and other information, visit

https://soldtiger.com/sales/ev-charging-facility-assets

Meat-Industry Equipment from Strauss Brands Goes to Auction on Sept. 26

Online auction by Tiger Group and Barliant Auctions featured 465 lots of well-maintained assets from Strauss Brands’ Franklin, Wisconsin plant as company relocates to new facility

In a major opportunity for the meat industry, equipment from Strauss Brands’ Franklin plant was available in a Sept. 26 online auction by Tiger Group and Barliant Auctions.

Known for its premium-quality grass-fed beef, Strauss Brands shuttered its Franklin plant as it expands and relocates its operations, making more than 465 lots of meat-processing, slaughterhouse and packaging equipment available to the industry, said Chad Farrell, Managing Director, Tiger Commercial & Industrial. “This excess equipment includes steak-cutting lines, meat grinders and mixers, metal-detectors, portioners and a wide array of high-utility packaging equipment, to name just a few,” he noted.

“Multi-generational Strauss Brands is widely respected, and these assets are in great condition and well-maintained,” added Scott Swanson, Owner and President of Barliant & Co./Barliant Auctions. “This Barliant-Tiger Group auction is a strong opportunity for the U.S. meat industry, especially given the high cost of brand-new, stainless steel equipment in today’s marketplace.”

The timed, online auction of excess assets from the Franklin plant closed on Thursday, September 26, at 10 a.m. (CST). Bidding opened on Friday, September 20, at 10 a.m. (CST) at BidSpotter.com.

Highlights of the online auction included:

  • Marelec (Portio) Steak Cutting Line
  • Ross Mdl. IN850 Tray Sealers
  • Lantech Mdl.Q300 Pallet Wrappers
  • Cryovac Mdl. 8600E-18 Rotary Packaging Machine
  • Repak Mdl. RE-25 Rollstock Packagers
  • Weiler Mdl. OMNIV Meat Grinder
  • Weiler Mdl. MGDOM 14/360B Mixer/Grinders
  • Stainless Steel Gambrels
  • Vemag Mdl. 25E Vacuum Stuffers
  • Vemag Mdl. MLL381 Multi Loader Lifts
  • Vemag Mdl. MMP223 Portioners
  • Sesotec Metal Detectors

For asset photos, descriptions, and other information, visit
https://soldtiger.com/sales/complete-meat-processing-facility/

Online Auction Features Live Event and Entertainment Production Rental Gear from North American Leader PRG

Online Auction Features More than 900 Lots of Production Rental Gear from Global Leader PRG

Tiger Group auction on November 5th featured digital cameras, lenses, consoles, projectors, moving lights, truss and much more, in Van Nuys, California.

Tiger Group online auction on November 5 offered over 900 lots from PRG’s extensive rental inventory of professional production equipment.

PRG, with offices worldwide, offers the industry’s largest inventory of professional production gear. This auction featured:

Tiger Group is conducting the November 5 online auction, which boasts over 900 lots from PRG's rental inventory of professional production equipment.
Tiger Group conducted the November 5 online auction, which boasted over 900 lots from PRG’s rental inventory of professional production equipment.
The timed auction includes valuable pieces, including moving lights, from brands such as Arri, Ayrton, Barco, Canon, Christie, Sony, Vari*Lite, and Yamaha.
The timed auction included valuable pieces, including moving lights, from brands such as Arri, Ayrton, Barco, Canon, Christie, Sony, Vari*Lite, and Yamaha.

 

  • digital cameras
  • lenses
  • heads
  • consoles
  • audio
  • antennas
  • moving lights
  • projectors
  • switchers
  • truss
  • cables

Represented brands included Arri, Ayrton, Barco, Canon, Christie, Sony, Vari*Lite, and Yamaha, to name just a few.

“As we move into the holiday season, what better time to purchase production and rental-ready gear from a global rental house,” said Jonathan Holiday, Director of Business Development, Tiger Commercial & Industrial. “The Tiger team, which is in its sixth year of serving PRG, is very pleased to offer a variety of gear to support our buyers who utilize this equipment from live events, television, film and streaming.”

The timed, online auction of assets from PRG’s North American inventory closed on Tuesday, November 5, at 10:30 a.m. (PT). Bidding opened on Tuesday, September 29, at 10:30 a.m. (PT) at SoldTiger.com.

For asset photos, descriptions, and other information, visit https://soldtiger.com/sales/prg-av-production-and-rental-ready-gear/


ARTICLE: “Distress Leads to More Auctions of ‘Green’ Machinery & Equipment”

Chad Farrell discusses the impacts of green energy industry dispositions

Sustainable startups benefit from sunny media coverage, significant government subsidies and generous investment from Silicon Valley. But over the past few years, distress has emerged as a clear trend among some of these borrowers.
 
Some of these operators simply run out of money, others face insufficient market demand or struggle to make good on promises of ambitious solutions rooted in “disruptive” tech.
As a result, the asset-based lending world is seeing more liquidations of M&E, intellectual property (IP) and other assets from electric vehicle and battery companies, “green” packaging makers, experimental food producers, solar specialists and more.
 
Secondary-market demand for these companies’ assets can be significant. Earlier this year, Tiger Group’s Commercial & Industrial division auctioned $10 million in parts, tools, equipment and EVs formerly owned by Loveland, Colorado-based Lightning eMotors, which converted conventional, fossil fuel-burning vehicles into zero-emission EVs for fleets. Its operations were not continued after it entered receivership and was purchased by a third party. The bidder response included 40,000 page views, 309 registrants and 3,371 bids for 644 lots.
 
Here are a few additional examples of recent Tiger liquidations in the green/sustainable space:

  • A court-ordered Chapter 7 bankruptcy sale featured assets from Lemnature Aquafarms’ $14 million production and R&D plants in Florida. The regenerative agriculture company had tried to sell plant-based ingredients – essentially, green protein from waterlilies – to the food-and-beverage and healthy nutrition markets.
  • Another Chapter 7 sale centered on assets from green energy company Aqua Hydrex. The intended business model was to use electrolysis to extract hydrogen from water as a way to help decarbonize industrial operations, transportation and agriculture.
  • Tiger sold the assets of Romeo Power’s 215,000-square-foot EV battery assembly plant in California as a turnkey sale to Mullen Automotive. The company specialized in assembling lithium-ion batteries for e-motorcycles, golf carts, side-by-side ATVs and commercial truck tractors. Its owner and biggest customer, Phoenix-based Nikola Corp., liquidated the plant after shifting to hydrogen-fueled trucks and taking its supply chain local.

In many of these sales, buyer demand is strong not only for specialized equipment and IP, but also for conventionally useful assets like gas-processing equipment, steel tanks, industrial robots and CNC milling machines.
 
The November 7, 2024 auction of assets and IP from “grid-edge” tech startup Veloce Energy is a case in point. The sale featured assets from Veloce Energy’s Loveland facility as well as IP that included trademarks, logos and two provisional patents. Veloce was known for creating a platform for deployment and operation of infrastructure such as EV charging stations, commercial solar arrays and industrial storage facilities. Some bidders vied for the company’s battery energy storage systems; others went after conventional tools, parts, welders, forklifts, transformers, inverters, oscilloscopes and test equipment.

Challenging Business Models

Some experimental companies are unable to solve complex technical challenges and win customer adoption before their resources run out.
 
One Tiger private-treaty sale in the green packaging space featured inventory, molded-pulp manufacturing equipment and other assets from Zume, a global company that reportedly had raised $250 million for its business. Tiger also auctioned the Phoenix plant of manufacturer Zummit Plastics, known for producing both conventional stretch film and what it billed as the only biodegradable version of that product in the United States.
 
When operators have an unprecedented, moonshot-type process, auctioning their proprietary, highly specialized M&E and inventory can be challenging. In recent liquidations, such equipment has accounted for 20 to 30 percent of the assets on offer. In these cases, a piece of equipment that originally cost $1 million to design and manufacture could end up being sold for parts.
 
This reality necessitates frank conversations with the company early in the liquidation-planning process. In addition, when working with borrowers that have tried to revolutionize energy, agriculture or transportation, lenders need to ask pointed questions about the appraisal. That $20 million asset valuation might, in reality, translate into a much lower recoverable value.
 
All of that said, the sustainability space is full of newer companies with test modules, laser welders, CNC machines and industrial robots that are in excellent condition, or even still in the box, with tremendous resale value.
 
Willing Turnkey Buyers

The Fed’s new round of rate cuts notwithstanding, today’s higher costs are making it harder for some green/sustainable borrowers to survive. However, their larger competitors, often backed by opportunistic funds that look to pick up companies out of bankruptcy and receiver sales, can be eager to grow. Acquisition is therefore a potential route to new life for distressed companies in this space.
 
Recent turnkey sales executed by Tiger underscore healthy operators’ appetite for such opportunities. The list includes Tennessee-based green packaging manufacturer Genera’s acquisition of Zume and as noted above, Mullen Automotive’s $3.5 million acquisition of Romeo Power’s EV battery production assets. The potential value of IP such as patents and customer lists are often significant in such deals and should not be overlooked.
 
Future Opportunities

Efforts to make money by solving critical ecological problems and overthrowing paradigms in areas such as transportation, energy, agriculture and packaging will keep on growing, political pendulums notwithstanding.

Admittedly, some of these novel inventions will end up being dismantled and sold for parts and scrap. But others will retain substantial value and enjoy a second life among green and sustainable buyers – whether starry-eyed or truly innovative – that still want to change the world.

Savvy lenders and disposition firms can maximize this opportunity by taking a bifurcated approach to borrower collateral. They already fully grasp the potential recoveries associated with the universal M&E described above. Moving forward, they can continue to build their expertise and buyer relationships with respect to highly specialized assets as well.

This article appears in Equipment Finance Advisor.