My read is no. All existing shares will be canceled, not replaced.
The Plan provides for a restructuring of the Company's long-term debt and the infusion of up to $86 million of new equity funding, which will support the continued operation of Ener1's subsidiaries. In addition to the new equity funding, the holders of the existing senior notes, the convertible notes and a line of credit have agreed to restructure their debt in a partial debt-for-equity exchange. All of the current common stock will be cancelled when the Plan becomes effective, and new common and preferred stock will be issued to both the current note holders and in consideration of the new equity funding that will flow into the Company. The existing notes will be exchanged for a combination of cash, new equity and new notes. The Court entered a written order confirming the Plan and the Company will now proceed to close on the restructuring transactions that the Court has authorized. It is expected that the Plan will become effective within the next two weeks.
