Ener1 disclosure statement approved, pre-packaged plan confirmed

By Jim Witters

Wilmington, Del., Feb. 28 - Ener1, Inc. received court approval of its disclosure statement and confirmation of its pre-packaged Chapter 11 bankruptcy plan, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

The company filed its petition after reaching agreement with its primary investors and lenders on a plan that will provide up to $81 million in new capital and significantly reduce its debt.

Financing details

As previously reported, the company entered into a restructuring, lockup and plan support agreement with the holders of its 8¼% senior unsecured notes, as well as Itochu Corp. and Bzinfin SA.

The company said those parties constitute all of the holders of its outstanding long-term debt.

Bzinfin and several of the other participating lenders will provide the up to $81 million of equity financing, of which Bzinfin will be responsible for $50 million, minus the outstanding balance on a debtor-in-possession loan, and Bzinfin and the noteholders would be responsible for funding their shares of up to $31 million.

Plan terms

Under the plan confirmed Feb. 28

• Holders of general unsecured claims and bridge loan claims will be paid in full;

• All of the company's existing common stock will be canceled, and holders will receive no distribution;

• Long-term debtholders will receive a combination of cash, a new term loan and new common stock in exchange for their claims; and

• New preferred stock will be issued to the provider of the company's post-bankruptcy and exit funding.

None of the company's foreign or domestic subsidiaries are included in the reorganization cases.

Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company. The Chapter 11 case number is 12-10299.

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