Challenge
Enseco was a leading supplier of directional drilling and production testing services to the energy industry. As a
result of the recent energy industry downturn, Enseco became financially challenged and went into receivership
in 2015. PricewaterhouseCoopers (PWC), a leading professional services network, was then brought in to manage
this company’s insolvent assets on behalf of its creditors across several North American sites.
Enseco’s wide range of assets included everything from pressure vessels to trailers to valve manifolds to laptops
and monitoring equipment. PWC aimed to efficiently liquidate this surplus, turning it into working capital to help
pay off Enseco’s creditors. It also sought to free up resources by discharging its legal obligation as custodian of
Enseco’s sites. Since selling and managing energy surplus is not among PWC’s core competencies, it turned to
an outside partner to assume this burden and provide working capital by purchasing Enseco’s assets outright.
Solution
PWC selected Tiger Liquidity Services Energy Partners (TLSEP) to purchase Enseco’s surplus assets at sites in Casper,
Wyoming and Minot, North Dakota. With deep expertise in energy equipment and the secondary market, we could
provide competitive offers to PWC throughout the bid process that shifted assets and deal requirements. Flexibility,
responsiveness, and knowledge ensured our final offer met the goals of PWC and its constituents.
PWC received immediate cash for the assets through TLSEP’s “purchase” model. We also offer a “guarantee”
model in which the client receives immediate payment and additional recovery if secondary-market sales
surpass a determined milestone. In our commission model, the client is paid based on actual recovery generated
in the secondary market – this option can result in the highest recovery value. TLSEP works closely with clients to
determine the best purchase model for their situation.
TLSEP sold Enseco’s assets through an online auction. Tapping our energy industry and secondary market expertise,
we reached a wide range of targeted energy buyers, ultimately achieving over 3,000 bids from over 100 bidders for
200 assets. We sold all assets in place at Enseco’s sites and arranged inspections, pickups, and compliant removal
to ensure the sales concluded smoothly.
Results
PWC received immediate capital for Enseco’s insolvent assets, enabling it to fulfill receivership obligations by paying
Enseco’s creditors. Getting immediate cash for the assets helped PWC pay more quickly while avoiding potential
risks in the secondary market. By taking over custodianship of the two sites, TLSEP removed a significant obligation
from PWC, freeing up additional resources.
Since the secondary energy market is usually not a core focus area for insolvency organizations, they often lack
the resources and knowledge needed to achieve desired recovery levels. By partnering with TLSEP, however, PWC
efficiently achieved maximum recovery while outsourcing the complexities inherent to the sale and management
of surplus energy assets.
