Olshan Handles Liquidation of BNS Holding Following Transfer of Sun Well Services to Steel Excel to Qualify as a Tax-Free Type D Reorganization

Olshan’s client, BNS Holding, Inc., announced the completion of the acquisition by Steel Excel Inc. of BNS’s subsidiary, Sun Well Services, Inc., a work-over rig provider to oil and gas exploration companies for approximately $85 million. Following the closing, BNS distributed substantially all of its assets to BNS stockholders and liquidated. The transactions qualified as a tax-free reorganization under Section 368(a) of the Internal Revenue Code, such that affiliates of Steel Partners Holdings L.P., who owned 40% of Steel Excel and 85% of BNS prior to the acquisition, thereafter owned over 50% of Steel Excel. The Olshan team that worked on this transaction included Steve Wolosky and Kenneth Schlesinger.