Lithium-ion battery maker Ener1, which filed for bankruptcy in late January, plans to emerge from its Chapter 11 status by mid-March with the help of $86 million in new equity and debt-holder agreements to restructure their debt on the company.

Ener1, whose own investments include a stake in now-bankrupt battery-electric-vehicle maker Think, said in a statement Wednesday that all current common stock will be eliminated and that new stock will be issued to both debt holders and new equity investors. Ener1's reorganization plan was approved by the U.S. bankruptcy court in New York's southern district.

The company declared bankruptcy the month after Ener1 was delisted from the NASDAQ stock exchange. Last summer, Ener1 restated its 2010 losses to $165 million from a $69 million loss because of its investment in Think. The Norwegian automaker went bankrupt last June after receiving a $118.5 million grant from the U.S. government. Think was since bought out by Russian investor Boris Zingarevich.
Show full PR text
Court Confirms Ener1's Plan of Reorganization

Company Expects to Exit Chapter 11 by Mid-March with a Stronger Financial Position

NEW YORK, Feb. 29, 2012 /PRNewswire/ -- Ener1, Inc. (the "Company") today announced that the U.S. Bankruptcy Court in the Southern District of New York has confirmed its pre-packaged Plan of Reorganization (the "Plan"), as modified, which clears the way for the Company to emerge from its Chapter 11 reorganization by mid-March. The Company will exit bankruptcy with a stronger financial position and a renewed focus on executing its long-term business strategy.

"The Court's confirmation of our Plan marks a significant step forward in completing our restructuring process," stated Alex Sorokin, interim-CEO, Ener1, Inc. "The holding company will exit bankruptcy with new equity funding and a stronger balance sheet, and its operating subsidiaries will be better positioned to meet the demands of existing and potential customers in the energy storage industry."

The Plan provides for a restructuring of the Company's long-term debt and the infusion of up to $86 million of new equity funding, which will support the continued operation of Ener1's subsidiaries. In addition to the new equity funding, the holders of the existing senior notes, the convertible notes and a line of credit have agreed to restructure their debt in a partial debt-for-equity exchange. All of the current common stock will be cancelled when the Plan becomes effective, and new common and preferred stock will be issued to both the current note holders and in consideration of the new equity funding that will flow into the Company. The existing notes will be exchanged for a combination of cash, new equity and new notes. The Court entered a written order confirming the Plan and the Company will now proceed to close on the restructuring transactions that the Court has authorized. It is expected that the Plan will become effective within the next two weeks.

Court documents filed in the Chapter 11 Case (other than documents filed under seal or otherwise subject to confidentiality protections) will be accessible at the Bankruptcy Court's Internet site, www.nysb.uscourts.gov, through an account obtained from Pacer Service Center at 1-800-676-6856 or online at http://pacer.psc.uscourts.gov.

About Ener1, Inc.

Ener1, Inc. (OTC: HEVV) is a holding company for several energy storage technology subsidiaries, which develop solutions for applications in the electric utility, transportation and industrial electronics markets. For more information, visit Ener1's web site at www.ener1.com.

Forward-Looking Information

This press release contains "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance, as well as management's expectations, beliefs, plans or estimates are forward-looking statements within the meaning of these laws. These forward-looking statements may be indicated by words such as "expects," "anticipates," "will," "plans," "believes," "scheduled," "estimates" and similar words and expressions, and include, but are not limited to, statements with respect to the completion of the court process, including the timing, outcome and impact on the Company's business. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties, which are difficult to predict and many of which are outside of the control of Ener1. These risks and uncertainties include Court rulings in the Chapter 11 case and the possibility of delays in the Chapter 11 proceedings, and other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, and its subsequent filings with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if underlying assumptions prove to be incorrect, actual developments and results may vary significantly from those projected. All forward-looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release or for any other reason.

SOURCE Ener1, Inc.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 20 Comments
      Roy_H
      • 3 Years Ago
      What has changed? Think and Ener1 never had a viable plan to begin with, that I could see. It failed because it was an extremely expensive product for what you got (both the batteries and the car). So sales were almost non-existent. Now with $86M fresh investment they would be better off just selling off existing stock and assets, then take the money and party in the Caribbean. I can't see a route forward, it's like Smart trying to revive the For2 with plaid paint jobs. New paint doesn't overcome the reputation for a clunky gear box. My head is spinning. An excellent product like the Volt being shut down and investors willing to sink another $86M into Ener1? My world is upside down.
        Spec
        • 3 Years Ago
        @Roy_H
        At $40K, the Volt is just too damn expensive for most people. But pure EVs may be selling a bit better. Nissan sold a good number of Leafs. The Mitisubishi-i is hitting the market. The FFE may get some sales. So perhaps Ener1 can get some sales in a pure electric. The Think City was not able to be cheap enough . . . $36K for a little plastic 2-seater just didn't fly.
          marcopolo
          • 3 Years Ago
          @Spec
          Spec, I'm beginning to think that the most damaging critic of the GM Volt, is not Fox, but the unintentional negativity of people like you! For years, people have been want a practical mass appeal, EV. Ranting, raving and even making films about the impossibly expensive and impractical EV 1. Finally, you can be a very good, EV! Practical, because it can be used in every situation. The Fed Govt, with even give you a nearly 20% tax break to buy your new car, but are you happy? No! Here you are, whining about the Volt being too expensive! The per capita income of the average US citizen is nearly $50,000! Trade-in your current vehicle, say $15,000, claim your tax credit $7,500, and deduct $2000 fuel savings p.a, for 5 years, and your new car costs only $1 per day ! Is $1 dollar a day, too expensive for your convictions? I'm not meaning to be impolite, but I'm sure most Americans can afford $1 a day?
      Turbo Froggy
      • 3 Years Ago
      Ug. This will never work with Ener1 and Think. Think needs to dump EnerDel and go back to using the Zebra batteries, at least offer tham as an option. Zebra sodium batteries are FAR less cost and they have way more miles on them than EnerDel's batteries. EnerDel would need to reduce their price to 1/2 to 1/3 of what they are now to compete. The Think City needs to cost as much as a Mitsubishi I or less, somewhere south of $25 before tax credits. That plus ramp up production huge. They should have a stockpile of cars ready to go when gas hits $5/gallon nationwide this summer.
        Jim McL
        • 3 Years Ago
        @Turbo Froggy
        Think DOES offer the Zebra battery in Europe, and no it does not outperform the Lithium battery except in cold weather. Charging time is actually a bit slower when it gets full and you must keep it plugged in even when it is fully charged or it will cool off in a few days. The Ener1 battery (spun off from Delphi) is one of the best in the automotive business. And having an even shorter range than the Think and Leaf makes the iMiev a much narrower niche. The only other EV with that short of a range is the Smart ED.
          Roy_H
          • 3 Years Ago
          @Jim McL
          "The Ener1 battery (spun off from Delphi) is one of the best in the automotive business." How do you know that? One of the issues I have with Ener1 is the complete lack of details, only hype. I have not read any specifications anywhere.
          Timo
          • 3 Years Ago
          @Jim McL
          AFAIK Zebra version of Think was only slightly less expensive than Enerdel battery version. Something like 10% off the price and same amount of range less range with Zebra batteries.
          Roy_H
          • 3 Years Ago
          @Jim McL
          And how much is the Th!nk with the Zebra battery vs the Ener1 battery. I ask this because I suspect the extreme price of the Th!nk is due mostly to the cost of the battery, and not the rest of the car. I am assuming the Zebra battery is much cheaper.
      EVnerdGene
      • 3 Years Ago
      This car has failed under about four owners, including Ford. (yeah, some will argue that Ford didn't try very hard) In the early 2000s, I visited Buena Park Ford (California), four different times, very interested in leasing one, but definitely wanting a test drive first. Four times in a 6-month period, they didn't have one that ran. Now, they're 10 years late. The Leaf, iMiEV, and Focus EV will run circles around this museum piece.
        marcopolo
        • 3 Years Ago
        @EVnerdGene
        @EVnerdGene Yes, most of these small companies really fail at maketing and quality control. BTW, what EV did you end up leasing ?
        Roy_H
        • 3 Years Ago
        @EVnerdGene
        As far as I can tell, this article is about Ener1 and its battery business, not Think. Ener1 could not find any car companies willing to buy their battery, so as an act of desperation bought enough shares in Think to force them to use Ener1 batteries. This drove the price through the roof, so both companies failed. I would have more faith in Think making a success with cheap batteries (from China?), than Ener1 finding a market for its batteries.
          Timo
          • 3 Years Ago
          @Roy_H
          It is hard to tell which one is more to blame. Think City was never quite good enough to be worth calling a car, and Enerdel batteries might have caused the cost go even higher than before it, *but* even without very costly batteries that thing was not a car of the future. More like a car-like toy that kids could use to learn traffic regulations in some theme park. A bumper car without fun of bumping to other bumper cars. No matter which way you look at it buying Think was not a good move.
      2 Wheeled Menace
      • 3 Years Ago
      Sad to watch how hard America has dropped the ball..
      Timo
      • 3 Years Ago
      Think City is a glorified golf cart with price tag of MiEV. No matter who owns it, unless it drops its price to 1/5 of what it is now it just goes bankrupt (again). Ener1 will be much better off not having that slowing their business. It would be good thing for EV:s if all Think cars disappear from face of the world. That thing is the avatar of all things that can be done wrong in battery electric vehicles. Real reputation crushers. I'm really surprised that it didn't go bankrupt sooner. I guess there are enough gullible treehuggers with lose money that they could sell couple of carts every year.
      Spec
      • 3 Years Ago
      Do they have any customers lined up? They really need some design wins.
      Dan Frederiksen
      • 3 Years Ago
      nice to just have 86million dollars to just casually throw at it : ) perhaps this time they will actually choose to let people buy their cells unlike the first time..
        HVH20
        • 3 Years Ago
        @Dan Frederiksen
        Probably not unless your going to be building over 1000 systems worth. Its not worth their time to support 1 off projects. If you were to be able to buy them, they would be at a premium and come with little to no warranty if your lucky.
          brotherkenny4
          • 3 Years Ago
          @HVH20
          So I don't see what the problem would be. EnerDel sells the batteries at a premium and then makes you sign a waiver saying you are completely responsible for the use of the batteries and there is no warranty. I guess they would rather fail. Or, maybe this makes the cells into a commodity and then they would actually have to be competitive to survive.
          Dan Frederiksen
          • 3 Years Ago
          @HVH20
          doesn't take many 5000$ customers to add up o thoughtless one
          HVH20
          • 3 Years Ago
          @HVH20
          Its a much better business model to spend your limited resources to design a battery bunker for grid storage once then sell that system several thousand times loaded with thousands of your cells. Or design a lithium forklift battery pack that sells 20k units a year off one design. The amount of engineering effort to make a fail proof battery system can be huge, just the R&D engineering support on a low end system is close to $250k for a prototype fleet (1-10 units).
    • Load More Comments