Ener1 emerges from Chapter 11 bankruptcy as privately held company

By Caroline Salls

Pittsburgh, March 30 - Ener1, Inc. has completed its financial restructuring and emerged from Chapter 11 bankruptcy as a privately held company, according to a news release.

As previously reported, the company's plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on Feb. 28. The plan took effect on March 30.

"We have emerged from bankruptcy with significantly less debt, more working capital and a stronger financial position to enable us to compete more effectively in pursuing business opportunities to provide energy storage solutions for electric grid, transportation and industrial appliances," interim chief executive officer Alex Sorokin said in the release.

Ener1 said it restructured its long-term debt and secured an infusion of up to $86 million of new equity funding, which will support the continued operation of the company's subsidiaries.

In addition to the new equity funding, the holders of existing senior notes, convertible notes and a line of credit have restructured their debt in a partial debt-for- equity exchange.

The existing senior notes were exchanged for a combination of cash, new common stock and new notes, while the convertible notes were exchanged for a combination of cash and new common stock.

The amount due under the existing line of credit was canceled in exchange for new common stock.

Ener1 said its common stock, which had traded over the counter with the symbol HEVV, was canceled on the plan effective date.

Holders of the canceled common stock did not receive any distribution under the plan.

According to the release, the company issued new shares of preferred stock in consideration of the new equity funding that will flow into Ener1 and be used to repay the debtor-in-possession loan received in connection with the restructuring.

Fort Lauderdale, Fla.-based Ener1 is an alternative energy technology company. The company filed for bankruptcy on Jan. 26 under case number 12-10299.

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