Raser Technologies sees approval of reorganization plan under new ownership
The reorganization plan of Raser Technologies following the Chapter 11 case, sees the ownership going to a group including Linden Advisors and Tenor Capital Management in exchange for debt they hold and $2.5 million cash.
Reported last week, “Raser Technologies finds some hope in the approval of a reorganization plan.
Raser Technologies Inc., the owner of a 6 megawatt geothermal electric generating plant in Utah, filed under Chapter 11 at the end of April and won the signature of the bankruptcy judge on an Aug. 30 confirmation order approving the reorganization plan.
The plan gives ownership of the business to a group including Linden Advisors LP and Tenor Capital Management LP in exchange for debt they hold and $2.5 million cash.
The plan was accepted by all creditor classes entitled to vote, even though unsecured creditors receive nothing aside from interests in a litigation trust. The disclosure statement characterized the recovery as “unknown.” As a group, unsecured creditors had $65.1 million in claims.
Linden and Tenor provided financing for the Chapter 11 case and own about half the $57.2 million owing on 8 percent convertible senior unsecured notes.
In addition to the plant, Raser has interests in geothermal rights for seven projects in four western states covering 270,000 acres, plus rights in another 100,000 acres in Indonesia.
The Chapter 11 petition in April listed assets of $41.8 million and debt totaling $107.8 million. The company had revenue of $4.25 million in 2010, resulting in a $71.9 million operating loss. The net loss last year was $101.8 million.
Liabilities of the Provo, Utah-based company include a $10.3 million secured debt on the plant. An affiliate of Merrill Lynch & Co. Inc. has a $22.6 million unsecured debt arising from financing for the plant.
The case is Raser Technologies Inc., 11-11315, U.S. Bankruptcy Court, District of Delaware (Wilmington).”