Infinia could not achieve full-scale operations rapidly enough to start generating positive cash flow.
Infinia Corporation (Madrid, Spain), manufacturer of stirling cycle engines for concentrating solar power (CSP) systems, on September 25th, 2013, announced that the inability to obtain additional financing has forced the company to file a petition for Chapter 11 relief in the U.S. Bankruptcy Court in Utah to preserve the value of its business.
Despite the strong growth in the first half of 2013 with nearly 200 MW of CSP projects under development in the Mediterranean region and traction in North America with the ongoing installation of a 1.5 MW solar CSP project at Tooele Army Base in Utah, Infinia could not achieve full-scale operations rapidly enough to start generating positive cash flow.
Infinia Corporation, the world’s leading manufacturer of free-piston Stirling cycle engines for distributed power, today announced that the inability to obtain additional financing has forced the Company to file a petition for Chapter 11 relief as it seeks to preserve the value of its business. The petition was filed in the U.S. Bankruptcy Court in Utah.
Infinia saw strong growth in the first half of 2013 and traction in North America with the ongoing installation of a 1.5 megawatt project at Tooele Army Base in Tooele, Utah, and nearly 200 MW of projects under development in the Mediterranean region. However, the Company could not achieve full-scale operations rapidly enough to start generating positive cash flow. Therefore its lead lender, Atlas Global Holdings, has made an offer to buy Infinia’s assets for an amount equal to the amount it is currently lending the Company under a debtor in possession financing arrangement.
Mike Ward, Infinia’s President and Chief Executive Officer said, “This has been a difficult step for Infinia. After carefully considering the available alternatives, the Company’s Board of Directors determined that the Chapter 11 filing was in the best interest of the Company and its stakeholders. This process enables Infinia to continue limited business operations while we pursue a speedy auction of the company.”
Added Ward, “We are incredibly proud of our employees, and we would like to thank our investors, development partners, customers and suppliers, for the years of support that allowed us to bring our innovative technology to market. We expect that a new buyer will emerge and assist us as we continue to bring our very efficient free-piston Stirling engine technology to market.” To this end, the company has retained a core workforce of approximately 30 people, including engineers, production, sales and service staff with the intent to continue mission-critical operations to support its PowerDish solar array installation at the Tooele Army Depot and continued development of its next generation free-piston Stirling engine able to run on multiple fuels.
Under Section 363 of the Bankruptcy Code, the sale process allows a buyer to purchase its assets “free and clear” of all prior liabilities if the Bankruptcy Court approves the sale. As part of the bankruptcy filing, Infinia has executed an asset purchase agreement with Atlas Global Holdings which is acting as a “stalking horse bidder”, at a price of $6 million, subject to higher and better bids. The Chapter 11 case was filed in Utah on September 17, 2013 (Case No. 13-30688), and after an M&A re-marketing process that has just begun; a deadline of October 31, 2013, has been proposed for submission of higher or better offers. Details of the Chapter 11 filing and procedures for participating in the auction are available on the Company’s website at www.infiniacorp.com.
Infinia intends to work with all key parties to conduct an orderly process to maximize its asset value and to conclude its Chapter 11 case in the quickest and most efficient manner possible. The filing will provide Infinia with the resources and time to strengthen its capital structure. Infinia expects that its current management team will continue to lead the company during this restructuring period.
George Hoffman at the law firm of Parsons Kinghorn Harris at www.pkhlawyers.com is handling the bankruptcy. John McKenna at the investment bank of Hamilton Clark Sustainable Capital, Inc. at www.hamiltonclark.com is handling the asset sale. All inquiries regarding an interest in purchasing the Company’s assets should be directed to John McKenna at firstname.lastname@example.org or at +1 202-461-2252.