GreenTech Automotive plan solicitation period extended through May 22

By Caroline Salls

Pittsburgh, March 15 – GreenTech Automotive, Inc. obtained an extension through May 22 of its exclusive period for soliciting votes on its plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The exclusive plan-vote solicitation period was previously scheduled to expire on March 23.

GreenTech said the confirmation hearing for its previously filed Chapter 11 plan was originally scheduled for Dec. 21. That hearing was rescheduled for Jan. 16 to allow additional time for the company to receive a deposit from its stalking horse bidder.

“Unfortunately, however, notwithstanding the additional three-week period, the stalking horse bidder never posted the deposit,” the motion said.

Shortly before the Jan. 16 hearing, GreenTech said it was advised that a group of A-3 and A-4 investors was preparing a bid for the purchase of substantially all the debtors’ assets.

Because this bid could potentially generate a much better return for creditors than a transfer of the assets to a liquidating trust, the plan hearing was further adjourned.

“While the debtors have made every effort to move the plan process along expeditiously, they have encountered numerous obstacles and delays,” the motion said.

“Given the latest turn of events, the debtors will not be able to confirm a plan before the exclusive solicitation period expires on March 23.”

The plan confirmation hearing is currently scheduled for April 16.

GreenTech is a Sterling, Va.-based electric vehicle manufacturer. The company filed for bankruptcy on Feb. 26, 2018 under Chapter 11 case number 18-10651.

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