Receivership Used to Wind Down Business for $6 Million Pick-up


Annual Sales


in Debt

Jaco Environmental, Mill Creek Washington


Recycler of refrigerators and other energy-inefficient appliances. $50 million sales. $15 million debt. Contracted with all the major utilities providers across the USA to rebate purchases of energy efficient refrigerators. Locations in 28 states. 

  • The Company was experiencing liquidity issues caused by rapid expansion and increasing G&A costs.
  • Contractually required vendor payments were delinquent causing slow down on new business development.
  • Covenant defaults caused the company to enter into a lender forbearance agreement.
  • Consumer reimbursement payments became delinquent causing utility contracts to withhold payments.


  • MorrisAnderson discovered irregularities in rebate and other financial accounting.
  • MorrisAnderson was appointed State Receiver of the Company.
  • Determined the company was $3 million to $5 million delinquent on consumer rebate payments and as a result the business had to be shut down.
  • Performed a forensic analysis on rebate and other accounting to determine proper set-off adjustments for utility contracts and to pursue settlements on all contracts.
  • Shut down all 28 state processing centers all across the country, removed and sold assets and negotiated settlements with landlords to mitigate potential claims.
  • Handled consumer complaints and State District Attorney issues and resolved fraud claims.


  • Able to settle all utility accounts and resolve contract deficiencies and collect residual accounts receivables.
  • Settled all lease holder claims and mitigated contingent environmental issues.
  • Compiled evidence and support for lenders claim against owners that resulted in a large settlement with the owners.
  • The Receivership returned a value of $6 million greater than estimated liquidation value for the secured lender.