Xtreme Power, Inc. announced today that it filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Texas. The Chapter 11 filing will enable the company to continue its operations at all locations as it begins a process to identify an acquirer. The company’s core engineering, project development and operations staff will remain in place during this process.
Alan Gotcher, Xtreme Power CEO, said that the company’s general creditors will provide the necessary financing, including DIP financing, to enable the search for an appropriate acquirer to proceed. He also said that the Chapter 11 filing was structured to allow one of the company’s creditors to file a stalking horse bid for the company in the event that alternative bids during the Chapter 11 process prove to be insufficient. The company is seeking a superior stalking horse bid by February 28th, with a subsequent bankruptcy auction.
“We are very pleased,” said Gotcher, “with the steps taken by our general creditors that are supporting our Chapter 11 process and ultimate sale of the company. With our industry-leading expertise, our world-class partnerships with other leading companies including GE Energy Storage, Samsung SDI and Duke Energy, I have no doubt new owners will find Xtreme Power an attractive acquisition, particularly given that we will be free and clear of liabilities.”
Xtreme Power retained Gordian Group LLC to assist in the sale of the company. The move comes as interest in Xtreme Power continues to grow. Gotcher said that he predicts a speedy timeline for finding a new owner. Gordian will work with Xtreme Power to help manage the sale process. Interested parties are encouraged to expeditiously submit bids through the Gordian Group ahead of the late February deadline.
Gotcher said that the company’s strong pipeline should be very attractive to potential buyers. “With the pipeline in excess of $100 million and letters of intent for $65 million, we have a solid base of new business. We also expect EBITA–earnings before interest, taxes, depreciation and amortization–to be at break-even by later this year with significant upside potential to both EBITA and revenue. “I believe we’re a great company poised for a bright future of renewable energy generation, storage and transmission, ” Gotcher added.
With 12 projects in the field accounting for 60 MW of grid-scale installations, ranging from 1MW up to 36 MW, Xtreme Power’s operational experience includes more than 34,100 MWh charged and discharged over 472,200 hours of integrated power unit operation. The grid-scale energy storage market is poised for significant growth in the next five years. Xtreme Power has already built the largest energy storage system of its kind for Duke Energy’s Notrees wind energy farm in Texas, and has operations spanning from the Hawaiian Islands to the South Pole.