Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

P10 Industries Prepackaged Chapter 11 Bankruptcy

0
0

P10 Industries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Western District of Texas, case number 17-50635. The Company, which manufactures, sells and services flywheel-based uninterruptible power supply (UPS) products and modular infrastructure solutions, is represented by Eric Terry of Eric Terry Law.

According to documents filed with the Court, “Subsequent to the sale of substantially all of the Debtor’s assets, the Debtor has focused their efforts on (i) preserving cash by reducing overhead expenses; (ii) negotiating with the landlord and Langley to terminate the Debtor’s obligations under the Braker Facility Lease; and (iii) actively seeking financing necessary to move forward with the Debtor’s strategy to monetize the Patents and make acquisitions designed to generate profit and positive cash flows, thus creating long-term stockholder value (‘Strategy’).” Concurrent with its Chapter 11 petition, the Company also filed a Prepackaged Plan of Reorganization and related Disclosure Statement.

In connection with the bankruptcy, the Company entered into a restructuring support agreement (the “210 RSA”) with 210/P10 Investment (“210 Capital”) as well as a restructuring support agreement with Langley Holdings (the acquirer of P10 Industries’ former operations (the “Langley RSA”). Subject to the terms and conditions of the Plan and the 210 RSA, 210 Capital will invest $4.654 million cash in P10 Industries in exchange for shares of the Company’s common stock representing approximately 48% of the Company.

In addition, 210 Capital will provide up to $10 million of financing to be used for acquisitions (subject to the terms and conditions of the plan and the 210 RSA) as P10 Industries implements its strategy of monetizing its intellectual property and seeking investments in companies that generate profit and positive cash flows, thus creating long-term stockholder value.

Mark A. Ascolese, president and C.E.O. of P10 Industries, comments, “After an extensive search, we have found an investor who shares our vision of the future and is willing to commit capital to help us successfully implement our new strategy. We believe that we can emerge from protection under the Federal Bankruptcy Code via a pre-packaged plan in a matter of weeks and thus protect and preserve value for current shareholders.”

Read more bankruptcy news.

The post P10 Industries Prepackaged Chapter 11 Bankruptcy appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images