IBJNews

Ener1 exits bankruptcy under private ownership

Kathleen McLaughlin
March 30, 2012
Keywords
Back to TopCommentsE-mailPrintBookmark and Share

Ener1 is now a privately held company with $86 million in new funding and will continue trying to market its battery technology, which has roots in Indiana.

The company announced Friday that it had completed a restructuring and emerged from Chapter 11 bankruptcy. The U.S. Bankruptcy Court in the Southern District of New York confirmed Ener1’s reorganization plan on Feb. 28, and it became effective Friday.

Ener1 operates its EnerDel subsidiary out of a Hague Road headquarters, and it has had manufacturing operations in Noblesville and Cumberland. Company spokesman Brian Sinderson recently said he could not disclose the local headcount or other details of Ener1's operation until the exit from bankruptcy was complete. He could not be reached for comment Friday afternoon.

EnerDel inherited its lithium-ion battery technology from Delphi, which had a stake in the company until selling it to Ener1 in 2008. New York-based Ener1 had hoped to scale up the business and hire as many as 1,400 people in Indiana, but its bet on a small electric-car company, Think, proved to be its downfall. Ener1 sought bankruptcy protection in January.

The company now focuses on grid backup, commercial vehicles and industrial markets.

"We have emerged from bankruptcy with significantly less debt, more working capital and a stronger financial position to enable us to compete more effectively in pursuing business opportunities to provide energy storage solutions for electric grid, transportation and industrial applications,” interim CEO Alex Sorokin said in a prepared statement. “We are grateful for thestrong support of our primary investors, customers, employees and suppliers throughout this process."

Ener1 said it restructured its long-term debt and secured up to $86 million of new equity funding, which will support the continued operation of its subsidiaries. In addition to the new equity funding, the holders of the existing senior notes, the convertible notes and a line of credit have restructured their debt in a partial debt-for-equity exchange.

Ener1's common stock, which had traded over the counter with the ticker symbol HEVV, was cancelled effective Friday. Holders of the cancelled stock received nothing.

The company issued new shares of preferred stock in exchange for the new equity funding and in repayment of a debtor-in-possession loan.

The existing senior notes were exchanged for a combination of cash, new common stock and new notes, while the convertible notes were exchanged for a combination of cash and new common stock.The amount due under theexisting line of credit was cancelled in exchange for new common stock.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Really, taking someone managing the regulation of Alcohol and making himthe President of an IVY Tech regional campus. Does he have an education background?

  2. Jan, great rant. Now how about you review the report and offer rebuttal of the memo. This might be more conducive to civil discourse than a wild rant with no supporting facts. Perhaps some links to support your assertions would be helpful

  3. I've lived in Indianapolis my whole and been to the track 3 times. Once for a Brickyard, once last year on a practice day for Indy 500, and once when I was a high school student to pick up trash for community service. In the past 11 years, I would say while the IMS is a great venue, there are some upgrades that would show that it's changing with the times, just like the city is. First, take out the bleachers and put in individual seats. Kentucky Motor Speedway has individual seats and they look cool. Fix up the restrooms. Add wi-fi. Like others have suggested, look at bringing in concerts leading up to events. Don't just stick with the country music genre. Pop music would work well too I believe. This will attract more young celebrities to the Indy 500 like the kind that go to the Kentucky Derby. Work with Indy Go to increase the frequency of the bus route to the track during high end events. That way people have other options than worrying about where to park and paying for parking. Then after all of this, look at getting night lights. I think the aforementioned strategies are more necessary than night racing at this point in time.

  4. Talking about congestion ANYWHERE in Indianapolis is absolutely laughable. Sure you may have to wait in 5 minutes of traffic to travel down BR avenue during *peak* times. But that is absolutely nothing compared to actual big cities. Indy is way too suburban to have actual congestion problems. So please, never bring up "congestion" as an excuse to avoid development in Indianapolis. If anything, we could use a little more.

  5. Oh wait. Never mind.

ADVERTISEMENT