For more than 25 years, IEc has supported the U.S. Department of Justice, Environmental Protection Agency (EPA), Department of Energy, Department of the Interior, and numerous state agencies in the realm of financial assurance. We have in-depth knowledge and practical understanding of RCRA, CERCLA, SDWA-UIC, and TSCA regulatory requirements, and have participated in financial assurance reviews involving 40 states, ten EPA Regions, more than 1,500 financial assurance instruments, and approximately 1,000 corporate entities. Our range of services includes structural analysis of corporate histories; assessment of financial trends using tax return and SEC data; and analysis of trends in compliance with the Corporate Financial Test, use of captive insurance products, surety bonds, and letters of credit.

As the business environment has grown increasingly complex, a host of issues has emerged at the intersection of finance and law regarding corporate organizations and their evolution over time. IEc offers detailed knowledge of financial and legal principles that help enforcement teams determine the liability of defendants/PRPs and their affiliates. Our analytical support includes:

• Tracing successor liability over time through mergers, bankruptcies, asset sales, and name changes. This may involve assessment of substantial continuity of ownership, or the possibility that an asset sale constitutes a de facto merger.
• Assessing evidence related to alter ego, piercing the corporate veil, and corporate control, such as commingling or diversion of funds; disregard of legal/corporate formalities; and failure to maintain arms-length relationships among related entities.
• Determining whether asset transfers may constitute fraudulent conveyances.

When companies with environmental liabilities enter bankruptcy protection, corporate, environmental, and bankruptcy considerations intersect in complex and unpredictable ways. Government agencies may need to maximize the recovery of environmental liabilities that are difficult to value. Recovery may be especially complex if a parent company previously transferred the assets of its subsidiaries, leaving behind their bankrupt shells.

IEc assists clients in recognizing the warning signs of bankruptcy and in navigating the complex restructuring process of businesses in Chapter 11 reorganization. Our services include:

• Evaluating disclosure statements and reorganization plans to determine if sufficient information is available to assess the impact on our client’s financial interests.
• Pro forma modeling of a company’s future cash flows and ability to satisfy claims under alternative restructuring plans.
• Analyzing the effects of asset transfers, including whether the transferor was adequately capitalized and whether adequate consideration was received.
• Providing expert testimony in bankruptcy proceedings.

Analyzing the financial capabilities of municipal and non-profit entities requires an understanding of their unique legal, financial, and organizational characteristics. Unlike for-profit businesses, government organizations employ fund accounting to track their financial performance. The budgeting process serves as a major tool for controlling the distribution of resources. Legal constraints may exist in the form of restricted accounts, allowable transactions between accounts, and limitations on the degree to which taxes or membership fees can be increased from year to year. Further, unlike for-profit entities, government and non-profit organizations may be able to raise supplementary revenues from taxpayers, ratepayers, or members.

IEc is a recognized leader in evaluating the finances of municipalities and non-profit organizations. Over the last 20 years, we have analyzed hundreds of entities varying widely in size and scope, and have provided expert testimony in court cases and hearings.