News

<< Return

Management Announcement - Thursday, June 6, 2019

May 31st, 2019
Quality Companies Customers and Vendors,

We are excited to announce that effective Monday, May 21st, 2019, Quality Companies (QCP, QPM and Traco), has satisfied the conditions of its Plan of Reorganization and has emerged from bankruptcy.

By working constructively with its creditors and other stakeholders, the Company emerged with the same assets, eliminating all long-term debt and reducing its cost structure, which provides the post- emergence Company with a significantly improved capital structure to maximize assets to better serve current and future customers.

Quality received over $16.5 million in new capital from the new owners and management team. As a result, Quality has strengthened its financial position and operational flexibility including:

o Reducingdebtbymorethan$28million
o Creating in excess of $14 million in liquidity
o Expanding the Quality Companies footprint. Facilities in Youngsville and Houma,

Louisiana; Portland and Houston, Texas; and Belmont, Ohio. o Over $2.5 million to settle secured and unsecured vendors o $2.5 million to the previous owners

The management team (bios attached) will be comprised of Fortunato "Tony” Martinez, President; Scott P. LaGrange, CEO and John Clay Nunnally, CFO. Combined, the management team brings over 85 years of oil and gas experience, previously working together as the management team at Performance Energy Services in Houma, Louisiana.

As quoted in a meeting last week, Tony Martinez, President, said "We want all employees to understand that we plan on operating a safe work environment that is built on providing quality services and products to our customers. Our only goal currently is simple. Restore customer confidence, re-build vendor relationships and return to a level of profitability that allows us to invest in assets: employees, facilities and equipment. How do we get there? By working together and executing projects safely. We will build on the past 18 years. We believe that we have a great company with great employees. We want to be number one. Number one in safety. Number one in quality. Number one in customer, vendor and employee satisfaction.”

For the remainder of 2019, we will focus on the following areas:

o SafetyandQualityFirst
o Restore Stakeholder Confidence – Employees, Customers and Vendors o OperationalEfficiency

Quality People. Quality Service.

Fortunato (Tony) Martinez

Tony Martinez has 40+ years of demonstrably successful experience owning and / or managing private companies engaged in fabrication, mechanical and electrical construction services for the offshore and onshore oil and gas market.

Mr. Martinez is currently a co-owner and Executive Vice President of Zadok Technologies (Zadok), an international leader in Electrical & Instrumentation services.

In2000,Mr.Martinezco-foundedPerformanceEnergyServices(PES)withtwootherpartners. Tothisday,PESis an internationally recognized offshore and onshore construction, fabrication and Electrical & Instrumentation company. Startingfromscratch,hewasresponsibleforOperationsandgrewPEStoover$135millioninrevenue with operations that spanned 9 countries.

In 2013, he was majority owner of PES when he and his partners sold the company to Quanta Services (NYSE: PWR). He remained on staff as Executive Vice President of Operations for the duration of his employment contract until October 2016.

In 2018, he became co-owner of Zadok Technologies.

Mr. Martinez has several investments, both controlling and minority, that include entertainment and movie complexes and renewable energy services.

Before co-founding Performance Energy Services, Mr. Martinez served in supervisory positions with several offshore construction and fabrication since 1973, including Brown & Root, Aquatic International, Shaw-Trosclair, HB Zachary and Dynamic Industries, Inc.

Mr. Martinez is 64 years old.

Scott Lagrange

Scott Lagrange has 25 years of demonstrably successful experience of owning, leading and managing private and public companies engaged in fabrication, engineering, construction procurement and environmental services.

Mr. Lagrange is currently co-owner and CEO of Zadok Technologies, an international leader in Electrical & Instrumentation services.

He also is one of the founding members of Bronco Industrial Services (Bronco) in 2015. Bronco is a national leader in industrial mechanical and millwright services (turnarounds) and in pipe and structural steel fabrication services.

Prior to joining Zadok and Bronco, from 2008 to 20015 he served as President of Performance Energy Services where he was responsible for the operational and financial performance of the company. In 2011, he became a co-owner of PES. At PES he developed and executed the strategy that grew the company to $135 million with clients in 9 countries. Together with the management team he recruited, he led the successful transaction with Quanta Services in 2013.

Prior to joining PES, he served as Executive Vice President and CFO of Shaw Environmental and Infrastructure, Inc., a division of The Shaw Group Inc. The Shaw Group (Shaw) was a multi-billion dollar publicly traded company that provided fabrication, engineering, procurement, construction and environmental services. At Shaw he held various positions which included both financial and operational responsibilities and participated in all of Shaw's major acquisitions. Mr. LaGrange joined Shaw in August of 1994 as Controller of a newly formed subsidiary Shaw International Inc., which was the holding company of all Shaw's international facilities.

Prior to joining Shaw, Mr. LaGrange was engaged in public accounting with a large local accounting firm as a senior audit manager.

Mr. LaGrange received a B.S. in Accounting from Louisiana State University in 1988 and became a Certified Public Accountant in 1990.

Mr. Lagrange is 54 years old.

John Clay Nunnally

Clay Nunnally has 20 years of demonstrably successful experience of leading and managing both private and public companies engaged in fabrication, engineering, marine, construction, procurement and energy service companies.

Mr. Nunnally is currently co-owner and President & CFO of Zadok Technologies, an international leader in Electrical & Instrumentation services. He joined Zadok in 2017 and Mr. Nunnally is carrying out a corporate transformational plan that includes

• Implementing company budgets, planning and projections,
• Implementing controls, policies and procedures as well as monthly reporting package with KPIs. • Creating and maintaining new banking relationships, creating new bank facility and maintaining

debt compliance
• Implementing new policy and procedures pertaining to Human Resources, Purchasing,

Information Technology and Risk Management/ Insurance.

Prior to joining Zadok, Mr. Nunnally was CFO of Performance Energy Services from 2008 until 2016. At PES he was responsible for

• Accounting department and overseeing monthly reporting.
• Compiling company budgets, planning and projections.
• Implementing controls, policies and procedures as well as monthly reporting package with KPIs. • All banking relationships, including debt compliance.
• Overseeing Human Resources, Purchasing, Information Technology and Risk

Management/Insurance.
• Managing all company audits (Financial, Insurance, Bank and Customer Audits).
• Leading effort to market PES and completed a successful transaction in October of 2013.

Prior to PES, Mr. Nunnally was the Corporate Controller for Edison Chouest Offshore from 2004 until 2008 where he responsible for

  • Assisting in managing over $1 billion in financing and put a $325 million revolver/term package in place.

  • All debt compliance, including a significant bond deal with various institutional investors.

  • Managing the company financial audit (Ernst and Young).

  • All accounting functions and monthly reporting for vessel companies.

  • Coordinating accounting functions, taxes, and monthly and annual reporting requirements with

    foreign locations that include Brazil, Nigeria, Mexico, Singapore, The Netherlands, Cyprus and

    Norway.

  • Coordinating tax compliance for all entities (over 150 entities).

    From 1999 until 2004, Mr. Nunnally held several corporate and accounting positions at various commercial and energy related companies.

    Mr. Nunnally received a B.S. in Finance from Louisiana State University – Shreveport, a M.S. in Accounting from the University of Texas – Dallas and a MBA from the University of Dallas.

    Mr. Nunnally is 44 years old.


 

© Copyright 2019, The Quality Companies. All rights reserved.