Alcor Energy, LLC commenced a Chapter 11 bankruptcy case in the District of Delaware on December 19, 2018.
Alcor Energy operates a portable turbine generator business. Its core customers are oil and gas operators who rent generators to obtain power in remote places with limited access to conventional power grids.
Ultimately, many factors led to the deterioration of Alcor’s business performance. These include litigation claims, quality control issues, excessive operational and manufacturing costs, unprofitable customer contracts, deferred maintenance costs, and customer dissatisfaction. In the midst of these challenges, investor relationships also became strained.
To obtain an independent perspective, Alcor engaged Neil Gilmour III as an independent manager. Mr. Gilmour has extensive experience counseling companies through financial and operational turnarounds. Together with other members of Alcor’s management, Mr. Gilmour determined that a Chapter 11 process would be Alcor’s best path forward.
Alcor has announced that it intends to file a small business plan of reorganization through which is funded debt to its lender, Ocho Ventura, LLC, will be cancelled, and the reorganized company will emerge as a significantly delevered enterprise. Ocho will receive 100% of the membership interests in the reorganized company, as well as deferred payment on a portion of the amounts owed to it, through a debt-for-equity swap.
The Debtor has asked that no official committee of unsecured creditors be appointed in this case.
The Case No. is 18-12839. Additional information about the bankruptcy filing can be found here.
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