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"wiped out" is the correct answer, sub-penny here eventually
Correction, it's in the docket ... still reading though it:
See:
Notice of Intent Notice of Designation of Stalking Horse Filed by Beacon Power Corporation. (Attachments: # (1) Agreement Representative Form of Asset Purchase Agreement) (Ryan, Jeremy)
http://dm.epiq11.com/BPE/docket/Default.aspx?rc=1
Not sure ... Don't see the info on the docket yet.
http://dm.epiq11.com/BPE/docket/Default.aspx?rc=1
"a new private company"
am I correct in assuming the shareholders are now officailly wiped out?
or is the cash to buy up the outstanding shares?
just curious...
I have not owned this for a long time.
Source: Beacon Power Corporation
Date: February 06, 2012 09:24 ET
Beacon Power Assets to be Sold to Rockland Capital
Leading Energy Investment Firm to Acquire Stephentown Flywheel Plant and Other Assets; Intends to Continue Beacon Operations and Build Second 20 MW Plant
TYNGSBORO, Mass., Feb. 6, 2012 (GLOBE NEWSWIRE) -- Rockland Capital, a leading private equity firm focused on energy-related investments, will acquire Beacon Power Corporation's 20-megawatt flywheel energy storage plant in Stephentown, New York, and most of the other assets of the Company, based on its offer made February 3, 2012, in accordance with the process negotiated with the Loan Program Office of the U.S. Department of Energy (DOE). Rockland Capital was the successful acquirer among several leading energy and technology firms that vied for the opportunity following Beacon's Chapter 11 bankruptcy filing on October 30, 2011.
Under terms of the agreement and subject to court approval on February 7, 2012, Rockland will purchase substantially all assets of Beacon Power and its Stephentown subsidiary, for a combination of cash and a promissory note totaling $30.5 million, along with additional guarantees and funding obligations to DOE of $6.6 million. Rockland's purchase includes all assets of the Company's 20 MW flywheel regulation plant in Stephentown; all assets in Beacon's Tyngsboro headquarters including the intellectual property, inventory, spare parts, and equipment; assumption of an amended property lease in Tyngsboro to enable continuing operations; and many of the contracts associated with operation of the business.
The acquired assets and agreements will be placed into a new private company named Beacon Power LLC, wholly owned by Rockland, which will rehire a majority of the current Beacon staff into the new company. Rockland also intends to provide the necessary equity capital to develop a second 20 MW flywheel regulation plant in Pennsylvania. In addition to approval by the bankruptcy court, the Federal Energy Regulatory Commission must approve the sale of the Stephentown assets.
Scott Harlan, Managing Partner for Rockland Capital, said, "We were attracted to Beacon Power because of its effective fast-response, grid-connected energy storage technology and its successful experience applying this technology as a frequency regulation resource in Stephentown. With the implementation later this year of FERC-mandated pay-for-performance compensation for balancing services provided to the grid, both the Stephentown plant and the one we plan to build in Pennsylvania will realize much improved revenue. We're pleased to make it possible for this company and its talented team to continue to innovate and grow, and to provide a runway to facilitate a path to commercial success."
Bill Capp, Beacon President and CEO, commented, "Rockland Capital is a well-capitalized company that has an excellent track record of successfully identifying undervalued electric power generating assets and applying its knowledge of the business and the capital necessary to develop the full potential of those assets. They recognized early on that Beacon was one such opportunity and our relationship has been positive and productive throughout their evaluation process. We're grateful for their commitment to support Beacon and we look forward to working together and achieving our commercial objectives."
The sale of Beacon's Stephentown plant and other assets was organized and conducted by Beacon's financial advisors, CRG Partners, and legal counsel, Brown Rudnick LLP. For more information on the asset sale, refer to the case docket here: http://dm.epiq11.com/BPE/docket/Default.aspx?SearchCriteria=.
About Rockland Capital?
Rockland Capital, a private equity firm founded in 2003, is focused on the acquisition, optimization and development of companies and projects in the North American power sector. The firm manages Rockland Power Partners and Rockland Capital Energy Investments and has offices in Houston and New York. More information is available at www.rocklandcapital.com.
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 Matrix, 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. 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 resulting from the conclusion of the auction process, expectations regarding the closing of the agreement to sell the Company's 20-megawatt flywheel energy storage plant in Stephentown, New York, and all other assets of the Company, in a manner consistent with the agreement reached with Rockland Capital, expectations regarding obtaining necessary approvals by the bankruptcy court and FERC, expectations regarding any re-hiring of current Company employees, anticipated benefits of restructuring the Company's debt obligations in the manner anticipated by the Company's agreement with Rockland and its current lenders, the potential for additional equity investment, and any statements regarding the anticipated prospects of the business and assets to be sold to Rockland Capital following consummation of the sale. 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 the necessity to obtain approval of the bankruptcy court and FERC, and satisfaction of certain other closing conditions, before the agreement may be consummated, risks that the bankruptcy court may require changes to the agreement in a manner not acceptable to us, Rockland Capital, our lenders or other parties in interest, and other 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.
CONTACT: Shane Litts
Rockland Capital
(281) 863-9009
shane.litts@rocklandcapital.com
Gene Hunt
Beacon Power Corporation
(978) 661-2825
hunt@beaconpower.com
Weird, just randomly came across this article while perusing the headline news this morning. Wonder if GE was there yesterday. http://www.ecomagination.com/the-comeback-king-flywheels-make-a-surprise-return-to-the-21st-century?utm_campaign=outbrain.
Saw it earlier. Some names are redacted but yeah I saw GE, Siemens, and a bunch of _ Capital guys.
Interesting to see A123 Battery company. they probably want to just use the feed and regualation with 20MW already hooked up to the grid. I doubt they have the money to make a big bid here. Although it would be an interesting market for them and they just brought on a large manufactruing facility that is woefully underutilized unless they have some large orders. This may be a market for them to show especially after they have announced two grid projects in Hawaii but for normal generation and not Frequency regulation market.
Interesting that some of the Capital guys ,based purely on some limited googling (having never heard of most of them) own Nat Gas assets. With Nat Gas being cheap these guys should be pretty profitable if the economy picks up. Right now the demand and pricing for these peaking plants should be pretty low as the reduced economy (which is why BCONQ is in Chapter 11) but with increased growth in alternative energy (wind, solar) there absolutely will be more demand for FR as these fuck with the frequency of the grid and Nat Gas is not fast enough to respond where these guys and batteries can.
The problem right from a bidding perspective now is the NY-ISO market is so much cheaper than other markets on Next day pricing and the the FERC ruling has been delayed a year for more input and no firm pricing has been announced for the fast response.
Anyone reckon this is going to fly ?
Go to Pacer or Epic. Pull up the CRG fee app from yesterday. Access exhibit B - it's CRG's time sheets. Everyone they've talked to about Beacon is listed without redaction. Seimens is in there, so are many others.
Key dates are this:
Final Bid - Feb 1 @ 4:00pm
Auction - Feb 3 @ 10am
Hearing to aprove sale on the 7th @ 3:30pm (Eastern).
I would not expect to hear anything until maybe after the 3rd. However we should hear on the evening of the 7th what the winning bid was and at what amount.
I think there will be atleast one bidder. I'd expect Siemens to be in there. They are working on what is supposedly a more efficeint flywheel design in a lab environment but there is considerable value to converting a lab design to a manufacturing facility. I've been invested in a battery tech company that in its move from lab to hand production to assembly line tech has taken over a decade. That knowhow is worth something.
Add in simply the inverter and costs to hook up 20MW to the grid. I've seen estimates for the cost of that to be worth $10-20M.
If there were no bidders, which I doubt, the Gov doesn't want another issue of a Solyndra where they extended financing in February 2011 (their second loan) and they still failed 6 months later. To many it was the second loan that was the crime, as the business model had shown by then it was flawed and had failed. In that case they will shut it down. This BK is an example of that thinking, if they really were concerned about getting their money back they could have worked with Beacon to 1) complete finishing the plant and 2)deferred repayment terms out a few years like many banks are doing with commercial loans. Their behavior is of not willing to compromise.
If one was to read the initial plans to sell this business and the fact that BCON initially put lots of provisions so that they could exclude anyone for any reason you should get nervous. The DOJ objected to this so that the highest bidder wins. This should make shareholders cautious as it may appear that Capp and mgmt of BCON want a certain group to win to potentially have them manage it long term (incentive for them) but not for shareholders wanting the largest return.
The fact that with the auction being scheduled tomorrow and we have not heard whispers of even a stalking horse bid should concern shareholders.
Lastly, CRG partners is the key to this case, imo. Back when they initially filed they were brought in to look at restructuring/sale options. They specialize in this and are very, very good. Without them I would have walked away and never looked further. Docket #164 tells the story of what and how they get paid.
They get 15% of the first $10M, 10% of the next $10M and 3% of anything beyond $20M for a risk premium. Those are huge levers. Sell for $10M - they get $1.5M, Sell for 20M they get $2.5M, sell for $30M they get $2.8M. You see they are incentivized to get to $20M and not more. We need them to get to $50M to pay back the STate of Mass and Fed Gov before we are considered.
The second part o
Aha .. who knows .. I never contemplated such an outcome ... might they let them continue as an operating concern and come up with a repayment plan ?
...and if nobody bids....?
I guess from this that we hear something next week ...
Beacon Power Wins Judge’s Approval for Auction Procedures
By Phil Milford - Dec 27, 2011 1:06 PM PT .
...
Beacon Power Corp., the maker of electricity-storage gear that received $43 million in backing from a program that supported failed solar-panel maker Solyndra LLC, won a bankruptcy judge’s approval of sale procedures.
Judge Kevin Carey signed an order in Wilmington, Delaware, today setting the deadline for non-binding indications of interest at Jan. 9; the final bid deadline at Feb 1; an auction of company assets on Feb. 3; and a sale-approval hearing Feb. 7.
The procedures are “in the best interests” of Beacon, based in Tyngsboro, Massachusetts, and its creditors, Carey wrote in the order.
Beacon filed for court protection Oct. 30 after struggling to raise private financing. It reported assets of $72 million and debt of $47 million in its Chapter 11 petition.
The company uses flywheel technology to store energy for quick use in electrical power grids.
Solyndra, which filed for bankruptcy in September, received $535 million in federal loan guarantees and couldn’t compete with government-subsidized foreign manufacturers.
The case is In re Beacon Power Corp., 11-13450, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.
ITS JUNK FELLA
lookin better as the day goes on! cmon BCON!!!
GOOOOOOOOOO Beacon!!!!!!!
ok, well don't say I didn't offer. Still good for a big pop soon.
Hear that steal? Rally would be great here. Get in while the gettins good! Let's do .20! Can't wait.
I heard a rumor that a rally to 20 cents is more likely. Shorts should cover.
bigger drop tomorrow likely
Good day to pick up some cheap shares. Hopefully we will get a little news here soon.
only to put money in a safer bet
Contacted Shelly today.... waiting...
this is bankrupt fella so save yourself
I don't the choices, LOL, I'll take green, BCOND green that is!!
I only bought in at 0.08 ... room for recovery for anyone buying at these levels ... IF the bankruptcy hearing works in our favour ... BIG IF .. RED or BLACK ?
I OWNED THIS OINKER BEFORE AND GOT OUT. This PIG is really dropping now.
All depends on the bankruptcy sale .. the PPS has a widespread and it seems to close every day in the 0.0785 / 0.08 price range.
There may be surprises to come ,,, Asset valuation was bigger than their debt .. they have some investors lined up ... they might negotiate a deal on deferred repayments to protect the plant and the technology ...
Still a play in this IMO.
I am not buying this mutt you waste your money here
no want to warn all not to buy this pig bacon in the pan soon!
I got shares at .06 on Thursday and .065 yesterday
G´Day BCONQers ... mmmm I was first in at 0.0785 ... dropped it from the previous ask of 0.079 .... but guess what, not even a partial fill on the order ... would appear that MMs are playing with this.
GFTA
glad to see you buyin in. Lots of room for big runs here.
Good luck to you, this just might help you recover your losses from elsewhere.
R u really loaded up?I am not sure about loading up.
yes they paint this everyday lately
Where are you? lets start getting this going
we are here trying to move this up
Hard to find any news on how it´s going with the bankruptcy hearing ..
Nothing showing on my account as yet ... and I was first to undercut the 0.079 so MM games again ... same as when I bought ...
Some went for 0.0785 was that you?
I gotta 50K SELL in at 0.0785 ... I bet they don´t touch it all day or will trade 200 between each other at end of day ... let´s see.
MM paint job ... they´ll buy them off you for 0.055 but will only sell to you at 0.08 ... same end of day paint job that we had almost every day last week.
Where is everyone? whats up price jump and no board action? We waiting on dates? Can't find much on Beacon.
It got my attention, and so I bought to average down finally. I was still in at $3.60 IIRC.
Hmmm up 86% on Friday ... summin´s up
Simple deal. They own $41M to the Feds, $5M to state of Mass.
My guess is the entire business will be sold, not just the Stevenstown 20MW facility as they will need somebody to manage the facility, improve it and a buyer who buys it will probably be looking to expand the facility.
I'm not as optomistic here as I originally was as the FR market is much smaller than I originally thought. The key will be if there are multiple bidders and that these bidders will require to have vision of the US and World grid markets that see the value. If so who knows what the business would sell for. If you are a long suffering shareholder I would hold at the current shareprice as if they don't get enough to pay back the bondholders shareholders get $0 but you could get a decent return if there is a bidding war.
I'm not buying but I am watching/learning.
Will the stock holders lose 100%? Or can this recover if ever?
I doubt that we will hear what companies have expressed interest from the courts. Hopefully something will leak out who has submitted paperwork for financial able to bid but I am not hopeful.
G´day BCONQers ... Based on this we should hear today who is interested in buying the plant.
Judge Kevin Carey signed an order in Wilmington, Delaware, today setting the deadline for non-binding indications of interest at Jan. 9; the final bid deadline at Feb 1; an auction of company assets on Feb. 3; and a sale-approval hearing Feb. 7.
GFTA
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