ECOtality creditor eyes exclusivity termination, wants to file plan

By Caroline Salls

Pittsburgh, July 7 – ECOtality North America creditor Blink UYA, LLC asked the U.S. Bankruptcy Court for the District of Arizona to terminate the company’s exclusive period for soliciting votes on its liquidating plan so the creditor can file a reorganizing plan for the case, according to a motion filed on Monday.

Blink UYA said it is an affiliate of ECOtality asset purchasers Blink Acquisition, LLC.

Before the ECOtality debtors filed the liquidating plan, Blink UYA said it entered into extensive discussions regarding an alternative plan with the debtors and their official committee of unsecured creditors.

However, Blink UYA said ECOtality and the committee cut off discussions and filed the liquidating plan.

“After a review of the liquidating plan, Blink respectfully submits that its reorganizing plan could be substantially more beneficial to creditors than the liquidating plan, because the liquidating plan fails to address the potential benefits associated with the reorganization of the debtors’ business,” the motion said.

Since the sale of substantially of ECOtality’s assets, Blink UYA said the debtors “have simply been acting in a caretaking capacity.”

“As lame ducks, their continued presence in these estates has continued simply as a matter of convenience,” the motion said.

“However, far beyond serving a role of convenience, the debtors-in-possession have maintained tight control over all aspects of the estates and the long-term decisions of the estate, deciding more or less unilaterally what they believe is the best course of action for the creditors.”

Plan proposal

As holders of 50% of the stock of the reorganized debtors, Blink UYA said qualifying unsecured creditors could potentially receive an enhanced recovery, but the committee was unwilling to continue discussions that would have allowed that negotiation to take place.

Under its own proposed reorganizing plan, Blink UYA said the enhanced recovery to qualifying unsecured creditors will be the greater of 50% of any tax savings realized by reorganized ECOtality measured over three years, and $1 million.

If 50% of any tax savings realized by the reorganized company during the applicable period does not exceed $1 million, that amount will be payable either in cash or in the stock of Blink UYA parent corporation Car Charging Group Inc., at the election of each qualifying unsecured creditor.

ECOtality, a renewable energy company based in San Francisco, filed for bankruptcy on Sept. 16, 2013. The Chapter 11 case number is 13-16126.

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