Positive Liability Transfer (PLT)

How PLT Works & Facilitation

OTEK Positive Liability Transfer (PLT) (3mb)

"We Manage Your Environmental Issues by Removing all Current and Future Environmental Liabilities in the Process"

The cost for mitigating or removing environmental impact increases ever year, as problems spread, criteria change and regulators stiffen.

We offer a specialised Fixed Cost Environmental Liability Transfer/Remediation Package using the following 5 step process:

1. Due Diligence - Research, Discuss and Understand your Environmental Needs
2. Assess the Risk - Complete a Detailed Technical Review
3. Prepare - A Remediation Action Plan with a Detailed Fixed Cost Price Assumption
4. Proceed - Sign Agreement for the Project (Transfer of Liability, if required)
5. Execute - Clean Up, Mitigate or Manage the Environmental Impact

Property buyers and sellers often have different expectations of the property value and discount on environmental liability, largely beacuse of the unknown cost to clean up environmentally impacted property.This can add time and cost to the project.

"We Can Assess the True Fixed Cost for Remediation of the Property and Transfer the Liability of Clean Up to Us"

With PLT, we take care of the environmental issue, which allows you to focus on your core business with a timely, cost-efficient property settlement.

Companies and their Boards are liable on an ongoing basis for their contaminated operations and associated sites.

Companies also have increasing statutory and accounting best practice requirements to quantify liabilities on balance sheets, and provisioning for environmental issues, contamination and rectification.

When companies lack focus on their environmental contamination or legacy issues, this directly impedes their bottom line and share value.

Often companies make the mistake of ignoring legacy, or non-commercial sites, which further exposes them to costs and risks associated with maintenance or potential injury litigation should someone get hurt on the site.

Today’s shareholders have expectations that a company will endeavour to maximise their value, while ensuring good corporate citizenship and environmental responsibility are upheld.

The competitive advantage in removing or managing known or the forgotten ‘dirty’ aspects of a business is obvious.

The most immediate benefit of removing these ‘known and forgotten’ issues is the limiting of a company’s exposure to potential liabilities.

A further benefit is being considered environmentally responsible in the marketplace thereby projecting a positive image to shareholders, investors, banks and the media.

There is also an economic benefit that comes from acting early to address these issues. The need to maximise net present value and the internal rate of return on company funds provides a real impetus to transfer environmental liability issues away from an organisation.

However it is important that in addressing the environmental contamination issues, companies do not lose focus on their core business. Allowing environmental contamination or legacy issues, to become a distraction can directly impede a company’s bottom line.

This is where OTEK’s trademarked product known as Positive Liability Transfer (‘PLT’) can assist companies by managing their environmental issues for them and by removing all current and future environmental liabilities in the process.

Positive Liability Transfer provides comfort for companies through an agreed solution that removes liabilities and provides a proven indemnification process.

What PLT Does

Currently utilised by a number of Fortune 500 companies globally, using PLT organisations can:

• Remove required provisions for environmental cleanups from their balance sheet, freeing up that much needed cash for strategic growth and management;
• Turn contaminated sites into money from day one, rather than after incurring ongoing open-ended costs over indefinite period of rectification;
• Allow a company to focus on its core business rather than environmental legacy issues, making better use of company resources; 
• Provide fixed cost remediation with none of the hidden consultancy costs, which typically, lead to cost overruns;
• Can be combined with a Sale and Leaseback option, transferring the environmental liability whilst continuing to operate the site or parts of the site. 

All of this can be delivered to companies with absolute confidence of the end result.

Why? Because OTEK has been involved in the management of cleanup of contaminated sites since 1991, and is well acknowledged as preeminent in practical environmental consulting solutions.

To further protect our clients, OTEK has combined with a world leading insurance underwriter, risk management and investment organisations to protect your organisation.

That’s why OTEK can say PLT delivers a commercially advantageous risk solution for any organisation.

Click here to read the OTEK article 'Providing New Options for Contaminated Land'.