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
