Beacon Power Corp. (fka BCONQ)

[RoboTrader]

Nice! I assume you're averaging down big time now?

\\//_

[RoboTrader]

Ilenes - any idea where we find the court dates for Beacon? I usually look at the Judges schedule but not finding it here.

\\//_

[Ecomike]

LOL, I still have my starter position!!! Only paid $3/share for it last year! LOL

[ScotiaNostra]

Probably ... but when we´re at a buck it won´t matter too much ... at least I have a starter position

[the cork]

That's a dry wipe! Wonder if you got caught in that pre market action.

[ScotiaNostra]

I picked up 40K first thing today ... price showed at 0.1 but we havn´t traded at that PPS today ... think I been done ...

ah well cést la vie ... hopefully we´ll all make some money here ...

GFTA

[the cork]

They are greasy SOB's, no doubt about it. Hope you get them kairos.

[kairos]

i put another bid in at 09 and was first in line but now they are filling UBSS over me. some one getting to load, pisses me off ...

[the cork]

It could still go either way for a while. Nice to see it move so easy though.

Hopefully once people figure out that there is a pretty good chance for survival of the commons they should pile in.

Hell, even if it only got back to .50 there would still be a lot of smiling faces from here.

[Planopenny]

should have listened to u huh...lol congrats though

[the cork]

Up 24% now. Doesn't take much buying to move it.

[buccaneer1961]

ok that sounds fair too,thankyou!

[the cork]

Looks like a chance to get in on the .08's maybe a little less. Some boneheads are bound and determined to sell at the bottom!

[Planopenny]

Ya, I looked breifly this weekend...looking more

[the cork]

All you can do Plano is find out as much as you can, and make your best decision.

[kairos]

opened a position with those 9s ...

[Planopenny]

was going to buy here today...not going to chase it though...congrats if u got in under 8

[the cork]

Sounds good ScotiaNostra. Up 12% in premarket. Could get interesting today.

[ScotiaNostra]

Got an order in ... hope you guys have found a hidden gem here

[the cork]

I think the odds are pretty good buccaneer. In Q land that translates to better than 50%, which is outstanding, in over 90% of all bankruptcies.

They can't dilute while in bankruptcy so the share structure remains the same.

We know where the bottom is, so there isn't anybody in for any less than us.

What ever positive things that come out of this, we are positioned to fully benefit from any future appreciation.

[buccaneer1961]

a few years ago this was above 15.00 pps i wonder if the ss remains the same? not that it will ever see that again but i good bonce if commons remain and they get financing and all squared away

[buccaneer1961]

so if all goes well the commons could be saved?

[RoboTrader]

Think of the NY plant as a "start up" technological test. The revenue that would have been collected from NY is nothing compared to the facility that will be built in Hazel, PA. Beacon is in a unique position with a unique employed staff. That PA project is a much bigger project and the DOE has already just recently given a grant for it. Beacon is expecting a much larger revenue source there. (much of this is in the 11/14 court docs, it's a fascinating read)

The sale of the NY plant is not considered a large loss to Beacon and it requires work to be completed, it's also not even generating revenue now as we speak. Even after it gets bought from someone else, they'll need to hire Beacon to complete it as no one else has the expertise to complete it.

Cool stuff and I like what I'm reading here. I haven't seen any red flags on this at all and it looks very favorable to investors.

\\//_

[Sharktnk]

Excellent Robo -

[RoboTrader]

Info from 11/14 court room procedure that I wanted to point out:

"The company has recently received a $24 million grant from the DOE, that you heard Mr. Capp describe, for a second plan. In Hazel, Pennsylvania."

"The Solyndra company itself has been a failure, in the sense that the plant is not operational. It’s quite different from Beacon in that Beacon has been a successful company."

"It’s a real company with about 70 employees who are very, very highly skilled. We’ve talked about some of the other assets, but that is the key asset of the company. It’s a technological know how that is not duplicated in the world. And beyond just the patents, it’s this technological know how that has attracted such great investment in years past."

"The cash collateral that’s being held in accounts at which DOE has a block is just north of $3 million. 2.4 of which, Your Honor, is Beacon’s own money. It’s money that Beacon has put in those accounts as collateral. So it’s not even money from revenues, but it’s Beacon equity. There’s not much other debt, Your Honor, here in the company. There is about $4 million of machinery, and equipment, and leases, and other types of hard asset financing. Mostly at the company’s, Beacon, headquarters in Tyngsboro, Massachusetts."

"It’s a company that was caught in a political firestorm. Did not expect to be here. Appreciates that there is a standstill period that is available only in a proceeding such as this, in which it can now do those things over the next several weeks to attract other capital. It has every confidence that it will be able to do that."

"It’s a company that has never needed to go out and borrow against its IP or it’s other assets. It doesn’t have any working capital line, because it’s never needed a working capital line. Maybe now wish we did. But it’s not a company that has found failure in the capital markets, it’s a company that’s historically had success."

"And the technology, as deployed in Pennsylvania - - now we went to New York, because we predicted that that would be where we would have the highest revenue. Turns out that it, it’s likely that there are other places where this plant can be deployed that, at least today and in the reasonably short future, will have a higher revenue generation potential."

"Q. And what’s the net present value, then, of the royalty stream you described? A. At 3%, 28 million and at 5%, 47 million. And that is on a 10% market share. And at 20 or 30% market share, which we believe this technology is capable of potentially realizing, those numbers get multiplied dramatically."

[RoboTrader]

Yea, I agree, the chances here are good considering that commons aren't likely to be cancelled. With such a small float, it's not a number that the company would be pushing to cancel.

\\//_

[the cork]

Excellent point Robo. All things considered, I like our chances.

[RoboTrader]

I think the cool thing here is that the only debt that Beacon has is to the DOE, once they pay them, there's zero debt (until they get financing from investors of course). Not only that, the plant they are sellng up there in NY, they paid 70M or so to build it and used 39M of DOE money. They're likely to sell it for more than that and still have cash left to use. I could be wrong about that though but I doubt they'd sell it at such as firesale price.

\\//_

[the cork]

I don't know Ecomike. Conspicuously absent in the PR that kairos posted was any mention of existing equity, although they did say: "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." Obviously equity is being discussed. It would speak well of the higher ups if they included us in the Plan of Reorganization mix.

I've seen Q's where the doorknobs spent more money fighting an Equity Committee than they could have settled for in the first place if they had just thrown a bone and not been so greedy about it.

[RoboTrader]

Of course Beacon gets a percentage of the sale. The plant actually cost over $70M to build and they used $39M of the DOE loan to build it.

\\//_

[Ecomike]

Good points, but didn't Beacon investors, shareholders, also pay for a share of the cost of the NY plant, beyond the 39 million the DOE payed for via a loan guarantee? Where is the other 30 million in assets that Beacon claims to have in excess of liabilities?

[the cork]

I think it sucks. The DOE essentially forced the issue. They saw a chance to get our plant and they took it.

Still, I don't think it's as bleak as all that. They let us have our 3 million bucks back LoL!

The Stephentown facility will remain a significant component of the revenue stream. They are gonna sell the plant not the technology.

Beacon will likely remain the operator and provide service contracts for the life of the project. Same with any other project down the road.

They can't just go to the yellow pages and get a replacement, so it seems like Beacon should have a guaranteed ongoing business relationship.

The Stephentown facility remains a working demonstration prototype for future sales regardless of who "owns" it.

It was a prime ripe plumb perfect for plucking, and thanks to the DOE, we just got plucked.

[MasterBlastr]

Looks like equity has already fallen below zero here.

[MasterBlastr]

Right. The should be a couple of flip opportunities along the road here. With the low o/s, especially.

[Ecomike]

One thing still bothers me. If the DOE is expecting to take a loss on the loan, that implies the NY plant selling for less than the loan balance (or does it? Does Beacon get a % of the sale price of the plant, or just what is left after DOE gets its loan payed back in full?). If Beacon gets nothing out of the NY plant sale, what assets of any significant value are left and what are they really going to fetch in a BK sale? With out owning the NY plant how will Beacon collect any revenue? With no revenue, there can be no profits....and so on.

What are the other assets and what are they worth?

[kairos]

Beacon Power Settles with Department of Energy Loan Programs Office

11/19/2011 @ 12:50PM
Source :
Business Wire
Beacon Power Corporation (BCONQ)

Beacon Power Settles with Department of Energy Loan Programs Office

Beacon Power Corp (QB) (USOTC:BCONQ)
Intraday Stock Chart

Today : Saturday 19 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=1.

About Beacon Power Corporation

Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation. Beacon's Smart Energy MatrixTM, now being operated and earning revenue, is a non-polluting, megawatt-scale, fast-response flywheel-based solution designed to provide less expensive, more sustainable and effective regulation services to power grids around the world. The Company's business strategy is both to supply regulation services from its own plants and to sell systems directly to utilities or grid operators in parts of North America and selected international markets. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

Forward-Looking Information Disclaimer

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the anticipated benefits of our settlement with the LPO as evidenced by the court order, expectations regarding the sale of the Stephentown facility and our other assets and our ability to attract new capital, expectations regarding our continued use of cash collateral and the benefits provided by our professionals’ agreement to defer fees, and anticipated advantages regarding the services Beacon Power Corporation provides to the Stephentown facility. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to risks associated with selling assets during bankruptcy, including without limitation the risks that we may fail to execute any such sale in a timely manner or at all and that we cannot predict the amount of proceeds received in any such sale; risks associated with raising new capital during a bankruptcy, including without limitation the risk that any such capital investment will be made in a timely manner, or at all; and risks associated with the terms and conditions included in the court’s order. Additional risks and uncertainties include: (i) the potential adverse impact of the bankruptcy cases on our business, financial condition or results of operations, including our ability to maintain contracts and other customer and vendor relationships that are critical to our business and the actions and decisions of our creditors and other third parties with interests in our bankruptcy cases; (ii) our ability to maintain adequate liquidity to fund our operations during the bankruptcy cases and to fund a plan of reorganization and thereafter, including maintaining normal terms with our vendors and service providers during the bankruptcy cases and complying with the covenants and other terms of our financing agreements; (iii) our ability to obtain court approval with respect to motions in the bankruptcy cases prosecuted from time to time and to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the bankruptcy cases and to consummate all of the transactions contemplated by one or more such plans of reorganization or upon which consummation of such plans may be conditioned; (iv) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the Chapter 11 bankruptcy cases to Chapter 7 cases; (v) those factors identified in our filings with the Securities and Exchange Commission as may be accessed at www.sec.gov.

The risks and uncertainties and the terms of any reorganization plan ultimately confirmed can affect the value of our various pre-petition liabilities, common stock and/or other securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of our liabilities and/or securities receiving no value for their interests. Because of such possibilities, the value of these liabilities and/or securities is highly speculative and will pose substantial risks. Trading prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in the bankruptcy cases. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this Statement, and which we assume no obligation to update

[RoboTrader]

Hardasset, if you held that long, yes, it did go back down to .40, key word is BEFORE exit. I got in at .03 and out over $1.00 then it went over $1.50 before it came down to .40 AT the end of BK. In fact, it bled down slowly to .40, there were PLENTY of opportunities to get out with a huge profit. You'll note I also said that traders got screwed on it (and they shouldn't have). BK stocks are dangerous to hold all the way through due to fat cat thieves. Take your profits and don't get greedy. Don't marry your stocks.

But that wasn't the main point. The main point of that example was A > L and a company that just needs to restructure is a good start for a BK stock. Most BK stocks it's L > A and the chances of commons surviving is next to none.

\\//_

[MasterBlastr]

Robotrader - Chemtura was at about 40 cents before exit. But shareholders got nothing.

[the cork]

Excellent summation RoboTrader. It looks good for us so far.

[RoboTrader]

The court documents filed today can be found here:

http://dm.epiq11.com/BPE/docket/Default.aspx?rc=1

It looks like they will be allowed to use the $3 million cash collateral that they have to resume normal business functions. So that means Beacon's goal of wanting to use this money was achieved today with the approval of DOE. Now we just need to see what happens with the POR (plan of reorganization).

Ilene will be able to give a better summary since this is what she does for fun. ;)

This sounds very favorable for investors right now. We'll see what Monday brings us, but so far it looks good.

\\//_ Live Long and Prosper

[RoboTrader]

Look into Pilgrims Pride and Chemtura. Two companys that had Asset value higher than Liability with notes/loans that were due to be paid off, they just didn't have the money to pay it off and couldn't refinance with the creditors due to economic conditions.

Pilgrims Pride sold of a part of their business, it went from about .13 cents to where it's at now; $5.00 or so. Chemtura sold part of their business, restructured finances, and eventually went from .01 to about $1.80 before BK exit but then there were other issues that screwed investors and now they're around $10.00 (with new shares).

The point here is that Beacon will be selling a part of their assets to satisfy whatever amount the DOE wants, then business will resume as usual for Beacon. With the float being so small for BCONQ and Assets > Liability, commons should be alright.

\\//_

[ilenes]

Mike, they are selling assets to repay DOE, although they've agreed to a haircut if necessary...this was a bit confusing and rushed, so I'd like to see the documents being submitted to be certain...but then since there are no other creditors of any size, depending upon sales price, we should be OK...

As background....we had three changes to the schedule today. First was moving from 2 to 1:30. Then, we got there and the attorneys asked for a recess until 4 (later changed to 4:30). Out we all marched, only to come back at 4:30 and have the attorneys ask for another recess for 20 mins. By the time we got back, everyone was anxious to get out quickly, and the attorneys promised to have the clean doc to the court by 7PM, so what we heard in the last portion was a very quick rundown of the new agreement. By the time you read this, the court and all the parties might already have it in their hands...

[Ecomike]

Speaking of confusion, it sounded like something was said about taking the company private, on a buy out, and DOE taking a loss (partial) on the loan, so how does that leave anything for existing shareholders?

And thanks for updating us!!!

[ilenes]

and many people there are already getting the tweets!

[ilenes]

every time I turn around...there you are :)

[garyhalvo]

i would do it on the WA board but everyone is just faster then me.

[garyhalvo]

its all good. bouncing from board to board doesnt help. lol

[ilenes]

haha. sorry for any confusion...

thanks for re-posting the tweets

Ilene

[garyhalvo]

didnt want to bother you. it was hard enough to copy and paste at the speed that you were going. LOL. thx again

[ilenes]

I post as the information comes out...first off it was 4PM and then changed to 4:30 as Judge Carey had another hearing and wanted more time...sorry for the confusion. You can always respond to tweets, and when I can, I'll answer!