Smith Sells Arm’s Assets

NEWPORT BEACH —  Smith Technology Corp., an environmental cleanup company, said Wednesday that it sold its engineering division’s assets to a New York City company for about $12.9 million.

ATC Group Services Inc. paid $5.5 million in cash, issued $3 million in short-term promissory notes and assumed $4.4 million in liabilities. It also hired all the group’s employees, who are spread through the country.

Smith Technology said it will use proceeds from the sale to reduce its senior secured debt and payable obligations. The sale is the first step in the company’s strategic restructuring plan.

The engineering division, with about $35 million in revenue, represents about 22% of the company’s total revenue.

Smith said it is further reducing overhead to align the costs of its remaining environmental remediation, construction and turnkey design and construction operations. It also will focus on talks to restructure its debt and equity, which it expects to complete by the end of September.