SOURCE: Constellation Capital Management, LLC

Constellation Capital Management, LLC

September 18, 2009 10:06 ET

Constellation Capital Management, LLC Announces Agreement With Employee Group of the Former Rexene Corporation

NOVATO, CA--(Marketwire - September 18, 2009) - Constellation Capital Management, LLC of Novato, California today announced that it has reached an agreement with FHR Odessa Acquisition, Inc., a special purpose entity formed by former employees of the former Rexene Corporation/Huntsman Chemical/Flint Hills Resources chemicals and polymers manufacturing business previously headquartered in Odessa, Texas.

Constellation Capital Management is a privately held merchant banking firm. Constellation is an affiliate of Redwood Consultants, LLC, a Novato, California Investor Relations firm. Constellation Capital is in the process of merging with a privately held FINRA member investment banking/broker dealer.

Pursuant to the terms and conditions of the parties' agreement, Constellation has agreed to organize, sponsor and assist the employee group in purchasing the assets and business of the former Rexene Corporation from its current owners.

FHR Odessa Acquisition, Inc. spokesman and President of Rexene Employee Association Michael DeShazo commented on the parties' agreement, saying: "Our employee group has worked diligently for the past five months in order to implement a plan to re-open the Rexene Odessa manufacturing facility and create opportunities for our co-workers and neighbors to regain their jobs.

"For many years, the Odessa chemicals and polymers facility manufactured some of the highest quality polymer products in the industry. Our employee group believes that we have the skills, the desire and the enthusiasm to re-establish and reactivate the Odessa complex.

"Despite the fact that the Odessa complex shutdown and our purchase efforts are taking place during a period of severe economic downturn, we believe that we have identified partners with unique abilities and experience. We believe that these partners have the skills, knowledge and experience to help us accomplish our objectives.

"Constellation Capital Management's efforts are being lead by Constellation Capital Management Senior Advisor and former Chairman of Rexene Corporation (RXN, NYSE) William Jeffrey Gilliam.

"In 1987, during a severe economic and financial industry recession, Bill Gilliam organized and lead the leveraged purchase of Rexene. The leveraged purchase transaction was completed in April 1988, and in August 1988, Bill Gilliam managed Rexene's Initial Public Offering on the New York Stock Exchange. Previously (in 1987) Bill Gilliam managed the Initial Public Offering and subsequent New York Stock Exchange listing of Calgon Carbon Corporation (CCC, NYSE)."

Constellation Capital Management Senior Advisor William Jeffrey Gilliam observed: "I look forward with enthusiasm to beginning my 'second career' with the former Rexene, its employees, and with the Odessa community. Twenty years ago, my former partners and I were fortunate to have the opportunity to help Rexene establish itself as a major manufacturer and supplier of specialty polymer and film products.

"Twenty years ago, the Rexene leveraged purchase and subsequent initial public offering took place in what many considered to be, at the time, the 'worst' financial industry conditions in their experience. Despite the fact that the current financial industry conditions are perhaps more severe than those existing in 1987, I believe that the proposed purchase and re-start of Rexene will be achieved for the very same reasons that we were successful the last time around.

"Rexene can still manufacture the highest quality specialty polyethylene and polypropylene products in the World. The Rexene employee group is the best in the World at developing and manufacturing specialty polymer products; and the markets for specialty products continue to support premium prices for superior products.

"In addition to re-establishing a focus on specialty polymers, we look forward to implementing an aggressive plan to include in the proposed asset purchase sufficient natural gas liquids reserves to render the new Rexene fully self sufficient in feedstock for the Rexene olefins manufacturing assets."

Managing Director of Constellation Capital Management, LLC Jens Dalsgaard commented, "During the past month we have held discussions with several NYSE, NASDAQ and AMEX listed companies that have sold off their operating business and now sit with 25 million to 150 million of cash on their balance sheets. These publicly traded companies are actively seeking a reverse-merger opportunity of the likes of Rexene. We believe anyone of these publicly traded operating companies can become our rallying point for several of the large institutional investors with whom we have spoken with concerning the purchase of Rexene."

About Constellation Capital Management, LLC

Constellation Capital Management, LLC (CCM) is a Novato, CA based merchant banking firm. CCM provides traditional merchant banking services to clients in the energy, specialty chemicals, high technology and health care industries. Principals of CCM were responsible for completing the leveraged purchase and initial public offerings of Chemdesign Corporation (NASDAQ), Calgon Carbon Corporation (NYSE), and Rexene Corporation (NYSE). CCM presently has investments in, and is assisting clients in the health care, defense technology, energy, and oil refining and processing industries.

Please visit our websites at www.constellationcapital.us and www.redwoodconsultants.com

Safe Harbor

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby.

Contact Information

  • Contact:
    Constellation Capital Management, LLC
    Jens Dalsgaard
    1(866) 412-4400