Beacon Power Settles with Department of Energy
Beacon Power Corporation has 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.