Daily News: February 29, 2012

Court Confirms Ener1’s Plan of Reorganization


Ener1, Inc. announced that the U.S. Bankruptcy Court in the Southern District of New York has confirmed its pre-packaged Plan of Reorganization, as modified, which clears the way for the company to emerge from its Chapter 11 reorganization by mid-March. The company will exit bankruptcy with a stronger financial position and a renewed focus on executing its long-term business strategy.

“The court’s confirmation of our plan marks a significant step forward in completing our restructuring process,” stated Alex Sorokin, interim-CEO, Ener1, Inc. “The holding company will exit bankruptcy with new equity funding and a stronger balance sheet, and its operating subsidiaries will be better positioned to meet the demands of existing and potential customers in the energy storage industry.”

The plan provides for a restructuring of the company’s long-term debt and the infusion of up to $86 million of new equity funding, which will support the continued operation of Ener1’s subsidiaries. In addition to the new equity funding, the holders of the existing senior notes, the convertible notes and a line of credit have agreed to restructure their debt in a partial debt-for-equity exchange. All of the current common stock will be cancelled when the plan becomes effective, and new common and preferred stock will be issued to both the current noteholders and in consideration of the new equity funding that will flow into the company. The existing notes will be exchanged for a combination of cash, new equity and new notes. The court entered a written order confirming the plan and the company will now proceed to close on the restructuring transactions that the court has authorized. It is expected that the plan will become effective within the next two weeks.

Ener1, Inc. is a holding company for several energy storage technology subsidiaries, which develop solutions for applications in the electric utility, transportation and industrial electronics markets.

Previously on abfjournal.com:

Bloomberg: Ener1 Wins Approval of $13.5 Million DIP Financing, Monday, January 30, 2012