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Charge Enterprises gets confirmation of pre-packaged Chapter 11 plan
By Sarah Lizee
Olympia, Wash., April 25 – Charge Enterprises, Inc.’s pre-packaged Chapter 11 plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Wednesday.
As previously reported, Charge and its advisers originally sought to pursue a Chapter 11 filing that would include a process for the sale of all of its operating subsidiaries via a sale of the equity of Charge Infrastructure Holdings, Inc.
The company ultimately determined that approaching its prepetition lenders, AI Amped I, LLC and AI Amped II, LLC, to pursue a pre-packaged bankruptcy proceeding was in the best interests of its stakeholders, and it began negotiations over a plan in mid-February.
On Feb. 27, Charge and the prepetition lenders reached an agreement regarding a balance-sheet restructuring in support of a pre-packaged plan.
Shortly after that, the company reached a final agreement with the prepetition lenders on the terms of a $10 million debtor-in-possession facility with AI Amped I as DIP agent.
Under the plan, other priority claims, other secured claims and $1.78 million to $2.41 million of general unsecured claims will be paid in full.
Holders of $51 million of prepetition lender claims will receive 100% of the new common stock of the company.
Holders of section 510(b) claims, other subordinated claims, series C preferred interest, series D preferred interest, series E preferred interest and common interests will receive no recovery.
The New York-based electric vehicle-charging infrastructure company filed Chapter 11 bankruptcy on March 7 under case number 24-10349.
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