ECOtality presents joint reorganization after settlement with creditor

By Kali Hays

New York, Oct. 29 – ECOtality North America filed a joint Chapter 11 plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Arizona.

As previously reported, the company filed a joint plan of liquidation in July but has since negotiated a settlement with objecting creditor Blink UYA, LLC resulting in the consensual reorganization plan also supported by ECOtality’s unsecured creditor committee.

With the proposed reorganization, ECOtality will continue business operations after the effective date of the plan “with little or no debt,” according to the disclosure statement.

As with the liquidation plan, the reorganization still calls for the creation of a liquidating trust on the plan effective date to distribute assets for creditor recoveries.

Also on the effective date of the plan, all outstanding capital stock of ECOtality will be cancelled and new stock in the reorganized ECOtality will be issued with 50% going to Blink and 50% going into a stock trust for the benefit of qualified stockholders.

A stock trustee will be appointed to oversee the stock distribution process.

Recoveries of intercompany claims and general unsecured claims have been improved under the plan and Blink agreed to a $200,000 payment to supply additional creditor recovery.

Creditor treatment

Treatment of creditors under the reorganization will include the following:

• Holders of secured claims, administrative claims, priority non-tax claims and intercompany claims will be paid in full in cash from the liquidating trust;

•Holders of allowed general unsecured claims will receive a pro-rated share of an unsecured claims fund up to 9%, and those holders that are also qualified stockholders may also receive an allocation of stock from the reorganized company;

•All existing company stock will be cancelled and those holders of equity interest claims will receive no distribution under the plan.

A hearing to approve the disclosure statement and confirm the plan is scheduled for Dec. 19.

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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