Xtreme Wins Bankruptcy Court Nod; Horizon to Provide DIP Financing
Xtreme Power won bankruptcy court approval February 7, 2013 to eliminate a February deadline for bids and instituted a straight auction process in March. Horizon Technology Finance will provide debtor-in-possession financing and serve as the stalking horse at the auction with a bid of $10 million and a pledge not to compete with firms bidding higher. In addition, Xtreme retained Gordian Group to assist in the sale of the company.
“This is all very good news; qualified bids are now due March 18, with an auction on March 20,” said Peter S. Kaufman, president and head of Restructuring and Distressed M&A of Gordian Group. “We also announced in court on Thursday that we have contacted over 100 buyers to purchase Xtreme Power, and about 30 firms have signed non-disclosure agreements to demonstrate their seriousness and gain access to management and Xtreme Power’s confidential information.”
Last month, Xtreme Power filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Texas. The Chapter 11 filing enables the company to continue its operations at all locations as it identifies an acquirer. The decision to file for Chapter 11 protection is part of a strategy to ensure that the company and its cutting-edge value offerings continue to be viable in the marketplace and take advantage of growing energy storage markets. The company’s core engineering, project development and operations staff will remain in place during this process.
“With an unmatched track record for deploying applications that work as designed, we’re perfectly poised to take advantage of the latest developments in our market,” said Alan Gotcher, CEO of Xtreme Power.
On January 21, 2014, the Puerto Rico Electric Power Authority announced the approval of eight projects for 210 MW of renewable energy requiring storage — the culmination of years of preparation, in which Xtreme Power took an active role. In addition, California regulators recently approved a plan to install a large amount of energy storage projects totaling more than 1,325 MW by 2020 to help the state meet its renewable energy mandate. The first bidding process will start by the end of 2014 and continue every two years.
With 12 projects in the field accounting for 60 MW of grid-scale installations, ranging from 1MW up to 36 MW, Xtreme Power’s operational experience includes more than 34,100 MWh charged and discharged over 472,200 hours of integrated power unit operation. The grid-scale energy storage market is poised for significant growth in the next five years. Xtreme Power has already built the largest energy storage system of its kind for Duke Energy’s Notrees wind energy farm in Texas, and has operations spanning from the Hawaiian Islands to the South Pole.
Xtreme Power provides power management and energy storage solutions to enable a more sustainable, reliable and cost-effective electric grid.