Beacon Power says it may have to liquidate
Wednesday, November 16, 2011
DOVER, Del. (AP) — A Massachusetts company that received a $39 million loan from the Department of Energy before seeking bankruptcy protection says it may have to abandon its reorganization effort and liquidate instead.
Beacon Power said in a regulatory filing this week that its ability to operate as a going concern is uncertain.
A Delaware judge earlier this month gave interim approval for Beacon to use some $3 million in cash collateral for the DOE loan to pay operating expenses during its reorganization.
The DOE is objecting to final approval for the use of cash collateral. The department says Beacon’s budget projections assume that DOE will continue funding the loan while Beacon is in bankruptcy, which the government says it will not do.
A hearing in the case is scheduled for Friday.