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I agree, but the problem is there was not enough bid support left today, due to low volume bids, such that all an MM had to was short it with a few shares to a level that had bid support, or to level the MM was willing to buy at. That was why I did not buy and add since the BK was announced, I knew a lower low, on low volume, buyer exhaustion would come and here it is.
The question now is will it continue? And if so, just how low will it go. I have seen many good penny stocks that were not even in BK, get hammered far worse this year, sad to say I also have shares of them as well. I still have the shares I paid $3.00/share for (Bought them before the last R/S) so I have a 99% loss already in just 12 months or so on this one. But it is in an IRA, so no sense in selling here. But I am still watching with an urge to buy, that I have resisted so far. I have yet to buy a BK company stock that I did not loose my a** on.
Luck for me I never averaged down on this one!!!
Shake out? Hope to hear some good news soon.
I still say it looks like a Friday head fake to sucker people out of their shares.
Looks like this is toast ... burned on both sides
Yep I can afford a loss here too (and I think that Gold Company will turn up trumphs (eventually)).
GL
Holy smokes! (ha) That's why they say never go all in on a stock. ;)
A few court dockets were released yesterday relating to some financial incentives to employees for staying on until the sale of some of the assets or possibly all of the assets. I think that's what's causing traders to exit from here.
This is a situation (like that gold mining company) where you don't want to be averaging down until you know how things are going to turn out. I'd rather chase a stock up knowing I'll be making money rather than sink cash into a stock not knowing where it will end up.
For me the key is whether or not they get capital from those strategic investors. I'm not putting any more into this until I hear about that, I can afford to lose what I have into it.
\\//_
Yeah, that was abrupt. Seems to me the news should have the opposite effect.
There have been little "head fakes" all day. 100 share paint down trades, 200 share, 400 share and so forth.
I wouldn't be shocked if this isn't the shake before a run.
Not trying to pump, but I've seen it before and it almost looks that way.
Wow that was some drop .. 31 % .. I guess news will be posted soon
NOTICE OF APPOINTMENT OF COMMITTEE OF UNSECURED CREDITORS
UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
DISTRICT OF DELAWARE
IN THE MATTER OF:
: Chapter 11
:
Beacon Power Corporation, et al.,
: Case No. 11-13450 (KJC)
:
: NOTICE OF APPOINTMENT OF
: COMMITTEE OF UNSECURED
Debtors. :
CREDITORS
Pursuant to Section 1102(a)(1) of the Bankruptcy Code, I hereby appoint the following persons to
the Committee of Unsecured Creditors in connection with the above captioned case:
1.
Markovich, Inc., Attn: Bill Markovich, 2827 Lexington Avenue, Butte, MT 59701, Phone:
406-494-3901, Fax: 406-494-1989
2.
Customized Energy Solutions, Ltd., Attn: Ariel Lager, 1528 Walnut Street, Philadelphia,
PA 19102, Phone: 215-875-9440, Fax:215-875-9490
3.
Varsity Facility Management LLC d/b/a Varsity Facility Services, Attn: William Neeb,
4 Tower Farm Road, Billerica, MA 01821, Phone: 978-262-1312, Fax: 978-262-9659
4.
Jonathan R. Leehey, 3 Brook Trail Road, Wayland, MA 01778, Phone: 508-801-6766,
Fax: 508-358-5721
ROBERTA A. DEANGELIS
United States Trustee, Region 3
/s/ Mark Kenney for
T. PATRICK TINKER
ASSISTANT UNITED STATES TRUSTEE
DATED: November 29, 2011
Attorney assigned to this Case: Mark Kenney, Esquire, Phone: (302) 573-6491, Fax: (302) 573-6497
Debtors’ Counsel: Jeremy Ryan, Esquire, Phone: (302) 984-6000, Fax: (302) 658-1192
That's correct, it's almost complete due to the two flywheel issues and I suspect some other minor issues. That'll take Beacon's expertise to complete.
This part is incorrect:
The plant by Beacons own estimate as of the October BK filing was that its 98% complete. That is the reason that they filed the BK, they felt they had the right to access their own monies that were held ($3M) and had access to the last $4M of the DOE loan to finish items.
The plant is fully operational but they have had 2 flywheel failures out of 200 in operation so part of it is determining the failure items, making tweaks to improve operational efficiency and other punchlist items. So are all the 20MW installed and operating? Yes.
But they still have some stuff to finish, fix, improve.
I thought the NY plant was finished and fully operational over 6 months ago. What is this you keep saying about finishing the plant? They PR'd full scale operation at least 6 months ago.
I don't disagree with what they hope to get out of this. I simply expect that in the end they will end us selling themselves along with the plant to someone as I cannot see them selling the plant for $45-50M plus a service contract which is what they will need to continue as a stand-alone business. At that point this will turn into a simple liquidation which removes some of the long term upside but for traders it may be better in the short term.
You are correct, as I stated, it is a grant of 24M and not a loan for their PA project. They will need 'strategic investors' to get this going and is one of the points of this BK as they had troubles getting financing after the Solyndra fallout.
The goal is to sell the plant in NY, not to liquidate Beacon as a whole business so the employees wouldn't be going with the NY sale. That's why I stated earlier that they would need Beacon to complete it and to help with the plant so whoever buys it is going to need Beacons services.
Mr. Capp reduced the value of the plant to $12M for that very reason, but I highly doubt that bidders are going to bid that low, like I said, it'll be a revenue generating business once it's completed.
Take a look at the court docs, it's all there.
\\//_
Robo- What other projects are you talking about?
There is a $24M grant (not a loan) for PJM in PA that they have had out there for a while now with a $5M grant to build it. They have been unable to find someone to JV this with them.
*****************************************************************
The original estimate of the Stephenstown plant was to be in the $60M range of which I've been told just to buy the power inverters and connect to the grid 20mW of power is worth $10-$25M at a minimum.
I think people need to realize that the sale in Jan is going to sell the entire business (staff, plant, IP) as no one will simply want the plant other than the value of the inverters/connection which ties to the $12M number. They need the people and entire staff's knowledge to make it work and the buyer needs to have the pockets to build multiple plants (3-4/year) and understand the ROE. That said the estimates are kind of wonky as the FERC ruling which is good for them still doesn't give us an idea of what revenues from these plants could be and will not be known until after the auction.
Its worth a flyer but not much more at this time imo. If anyone has a copy of the full FERC statement plus tariff pages I'd be interested for a link.
Maybe so, if Beacon continues to operate. Its starting to look like there will be no equity for shareholders.
I read about Mr. Capp's assessment as to why they stated it was worth $12M. He said without Beacon's expertise, it's worth much less.
I can almost promise you that when the bidders come up to bid on this plant in late January, they won't be bidding that low for it. The NY plant is almost done and when it is completed, it's a revenue generating plant. It won't take much to complete it.
Keep in mind, DOE is still granting money to Beacon for other projects. It's not like it's a big battle between the DOE and Beacon, they're actually working together.
Also keep in mind that there are a number of strategic investors involved as well. I believe that's the key in all of this since that was Beacon's intent in the first place.
\\//_
You are missing my point. The government wants to get paid back and will want cash and in if there is none then stock and warrants in the new reorganized company. To big to fail has nothing to do with this. This spells massive dilution.
I doubt the government will go that rout this time. 2008-09 partial take overs of AIG, GM and C, was a special bail out case of being too big to fail, BCONQ is not too big.
Just asking but isn't it likely the government will get stock and warrants in the reorganized company for the amount of money not recovered by the plant sale that is under the loan amount. It seems the Government is going try hard to be made whole on the loan and that may mean significant dilution in a post bankrupcy reorganization. I do realize some are banking on the greater fool theory.
If this
By Katy Stech
Of DOW JONES DAILY BANKRUPTCY REVIEW
At the demand of the U.S. Department of Energy, financially struggling Beacon
Power Corp. (BCONQ) agreed to sell its flagship grid-electricity storage plant
outside Albany, N.Y. in an effort to pay off a $43 million loan that was
guaranteed by the DOE.
In documents filed with the U.S. Bankruptcy Court in Wilmington, Del., Beacon
Power laid out a sale timeline designed around a Jan. 25 auction. The sale of
its Stephentown, N.Y., plant, which absorbs extra grid electricity that can be
put back into the power system later, would provide a pool of money that would
pay some of the roughly $39 million that the Massachusetts energy-storage
company has spent of the DOE-backed loan.
The sale process is expected to recover a fraction of that loan amount.
Beacon Power spokesman Gene Hunt pointed out that the company valued the plant
at about $12 million in its most recent quarterly filing.
"The DOE has made it clear they want to recover as much as they can on the
loan," Hunt said. "They're unmoving on this point."
Executives at the Tyngsborough, Mass., company originally planned to use the
company's Chapter 11 bankruptcy case to reorganize their business, perhaps by
selling valuable patents and moving forward on building a second storage plant
outside Wilkes-Barre, Pa. But Energy Department attorneys argued the DOE would
have to pay for those expensive reorganization efforts--a pledge they shouldn't
have to make while the company's only operating plant continues to incur losses
of nearly $1 million each month, they said in earlier court documents.
Beacon Power sought protection just days after officials in the DOE's loan
department--under sharp criticism in the wake of solar-panel maker Solyndra
LLC's bankruptcy--said they would stop funding Beacon Power's loan. The
company's finances had become strained after it spent more than $200 million to
develop technology that could recycle unused power left over from conventional
utility power grids.
"I wouldn't say that's true of all of DOE, but the loan office in particular,
it's been harder to work with them given the political climate," Hunt said.
By the time Solyndra filed for Chapter 11 bankruptcy protection in September,
it had also spend most of the $535 million loan that was guaranteed by the same
agency program, which used money from the 2009 economic-stimulus bill to
encourage renewable energy projects. Solyndra's loan guarantee created a
political firestorm because the department agreed to move behind other
creditors when Solyndra's debt was restructured in February.
Unlike that loan, the Energy Department sits first in line to recover money
from Beacon Power's New York project.
Beacon Power's sale plans, which require court approval, are expected to go
before a bankruptcy judge on Dec. 15. The company, which employed about 65
workers when it filed for protection, will also try to sell the business itself
at the same auction. That company holds dozens of patents on its technology.
Beacon Power was spun off from Massachusetts power company SatCon in 1997. It
listed assets of $72 million and debt of $47 million in its bankruptcy
petition.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and
those under bankruptcy protection.)
-Katy Stech, Dow Jones Daily Bankruptcy Review; 202-862-1344;
katherine.stech@dowjones.com
(END) Dow Jones Newswires
11-28-11 1440ET
Copyright (c) 2011 Dow Jones & Company, Inc.
14:40 112811
That was a great Q play. Guys in at .07 or .08 were up over 2,000 percent at one point.
I didn't sell at the absolute high, but I made out real well with Chemtura.
The shareholders got shafted in the final outcome but there were months of excellent returns for those that elected to take them.
I'm hoping to see some version of that here, but with the bonus of a better final outcome. The key is making sure you get your original money out (with modest profit)
when the opportunity is there and holding the remaining freebies for the ride.
There's another Q play working right now that's just hitting the 4 digit appreciation point for guys that got in right. Congrats to all the Transdermal folks.
As far as Q's go, I think this is one of the best ones in a long time.
Yea I know, I was responding to him too but through you. (ha)
I used CEMJQ as an example bec both BB and I were invested in that one. :)
\\//_
That's what I think too Robo, I was just responding to BB's assertion that the equity committee process was the only way to protect shareholder interests.
Even with an equity committee there's no guarantee of saving shareholder interests. CEMJQ had an equity committee, the fat cats won and the shareholders got screwed at the end. You just never know which way a judge will rule.
Fortunately, some traders bailed out long before that happened and walked away with some decent cash. :)
I don't know how Beacon is going to end up for shareholders, they're sort of in a unique position. We'll see what happens. I'm guessing they'll do alright.
\\//_
Generally speaking that is true BB, however with Q's there are always exceptions to the rule.
TDLPQ, QSGI, CIBH, and NTRZ being the most notable recent examples that required no equity committee to ensure survival of the commons.
BCONQ already states a substantial equity to debt ratio to the plus side, so proving that equity is "in the money" should be less of an issue:
"The company reported assets of $72 million and debt of $47 million in its Chapter 11 petition."
http://www.bloomberg.com/news/2011-11-03/beacon-power-approved-to-use-cash-could-sell-some-assets-2-.html
While the equity committee process you described is one way equity survives it is not the only way. If it gets gnarly I'd rather have one than not, but just having an equity committee is no guarantee of a favorable outcome either. The judge hearing the case is important too, and unfortunately in our case, Judge carey is a real dink. GLBB
Have played BK's before. To get a good outcome for stockholders, for survival of equity and fair determination of equity, an equity committee is needed so that stockholders can be represented in the bankruptcy process. It requires proof that there is stockholders equity, and then they have lawyers appointed to protect it and shareholders interests in the bankruptcy process. Without it, shareholders equity ownership, will be wiped out in chapter 11.
hi Robo - care to post a link - couldn´t find anything on that site .. TIA
Court date on Dec 15th at 3:00pm to authorize insurance premium finance agreements.
Required weekly docket outlining spending of collateral cash was posted last night on EpiqSystems.com
Once we hear about financing obtained for Beacon, traders for this play should be doing pretty good with their investment.
\\//_
It'll be pretty quiet here until Jan 10th to the end of Jan when the Beacon is required to come up with cash or the sale of the NY plant takes effect. I'm expecting to see some routine filings (like what we saw yesterday) but nothing major unless some surprise comes up.
\\//_
11/19 news
Beacon Power Settles with Department of Energy Loan Programs Office
PrintAlert
Beacon Power Corp (QB) (USOTC:BCONQ)
Historical Stock Chart
1 Month : October 2011 to November 2011
Beacon Power Corporation (OTC: BCONQ) reached an agreement with the U.S. Department of Energy’s Loan Programs Office (LPO) at a second Delaware court hearing on November 18, 2011, in the Company’s Chapter 11 bankruptcy proceeding.
Since filing for bankruptcy protection on October 30, 2011, Beacon Power and its advisors had engaged in ongoing discussions with LPO advisors as to the Company’s use of cash collateral and resolution of its loan obligation. Beacon requested that LPO support its restructuring efforts to preserve Beacon as an organization, maintain the value of the Company’s 20 MW flywheel plant in Stephentown, New York, and enable Beacon to complete its reorganization as quickly and efficiently as possible. However, LPO’s highest priority was to recover as much of the $39.1 million loan balance as soon as possible. This led to an agreement to conduct the sale of the Stephentown facility by January 30, 2012.
The court also approved Beacon’s request that it be allowed to list its other assets for sale, although the Company may choose not to do so, or only sell some individual assets, if it is able to raise sufficient new capital by the end of January. Beacon is in preliminary discussions with several strategic investors and private equity firms that have expressed an interest in making a significant investment in the restructured company.
Beacon Power is confident that the recent Federal Energy Regulatory Commission Order No. 755 on pay-for-performance for energy storage resources (like the Stephentown plant) will have a significant revenue-enhancing impact and increase the value of the flywheel facility when it takes effect in New York later in 2012. Further, Beacon believes that its singular expertise in developing, operating and maintaining grid-scale flywheel systems also adds unique value to the plant.
Also at the hearing, LPO’s objections to Beacon’s use of approximately $3 million in cash collateral to fund the Company’s business operations were resolved. Beacon will have full access to that cash to fund its weekly operations at an agreed-upon reduced budget. In addition, Beacon’s bankruptcy counsel and financial advisors have agreed to defer their fees, enabling the Company to allocate more of the cash collateral toward operations.
Bill Capp, Beacon Power President and CEO, said, “Our goal was to reach a settlement agreement with the DOE Loan Programs Office and we have done that. We will now focus on attracting new capital to reorganize our company.”
The settlement is subject in all respects to the terms of the court’s order, available at: http://dm.epiq11.com/BPE/docket/Default.aspx?rc
Yep and I bet that form T trade was the one I placed first thig this AM ,,, no worries Ißm in and did a bit of reading (DD) and it does look good from here on in ..
GFTA
Notice it went to .10 after hours with a Form T trade? Nice solid base activity here today. I suspect much of the sells were traders that bought in before the conversion to BK, notice they all got bought right up pretty much as soon as they hit the bid?
\\//_
Great stuff Robo. Nice DD. Anybody that hasn't seen this yet should make time for it.
Shareholder Information:
Beacon
This is all from just two months ago. I see nothing but good stuff about this company.
\\//_
Shared this with another board:
BB's Stock Haven - seems to have quite a few readers.
BCONQ Beacon Power (.10) High-energy flywheel-based solutions for clean, responsive, and reliable performance in multiple electric power applications.
One of the best "Q" stocks of 2011.
Website: http://www.beaconpower.com/
Pinksheets: http://www.otcmarkets.com/stock/BCON/quote
IHUB: http://investorshub.advfn.com/boards/board.aspx?board_id=1945
Chapter 11 announcement 11-1-11 http://www.beaconpower.com/files/Beacon-Media-Statement.pdf
Beacon Power Approved to Use Cash as Collateral; 11-2-11 http://www.bloomberg.com/news/2011-11-03/beacon-power-approved-to-use-cash-could-sell-some-assets-2-.html
.095 x .10 - Up 32% now - I like that part about "when we're at a buck...!!"
ScotiaNostra is wise!
Yup...I see the final order they were working on Friday evening was docketed, and I've read through briefly...since they lay out rules for the auction, it may be that the next hearing won't be until after that, but future filings will lay that all out.
OOPs .... I guess that puts everything in perspective
Cool, I had checked out Epiq Systems as well for a court date. Thanks for the response, it pretty much confirmed my findings as well, nothing is documented on court dates just yet. I suspect we'll hear from Beacon if they get any financing from the "strategic investors" that they mentioned.
\\//_
What event do you think will bring around a second bottom?
I suspect the bottom has already hit. If Beacon announces they have financing, the current price per share is going to get left way behind. If they announce a buyer for the NY plant, the current price is going to get left behind. DOE has already approved Beacon's use of the collateral cash, this means they don't need to go to a creditor for a DIP fund, and DOE has given Beacon $24M for the Hazel plant.
Not sure what event would cause it to drop anymore with such a small O/S float?
\\//_
Without access to Pacer, Epiq Systems has the information, but no future hearings have been scheduled that I can find, so far, and I don't remember a firm hearing set on Friday...I expect that in the next filings that will show, although they were talking about 1/9 for Indications of Interest...so a hearing should be sometime in January to discuss those and auction details, I imagine.
epiqsystems.com
I will always post hearing details on facebook and then follow on twitter.
Ilene
No, not yet, waiting for the second bottom.
Nice! I assume you're averaging down big time now?
\\//_
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