In a riveting turn of events, the renowned California Gas Turbine maker, Capstone Green Energy Corp., has raced to the Delaware bankruptcy court. They’re in the process of negotiating a debt-for-equity swap, targeting the towering $57 million funded debt.
California Gas Turbine Maker : 45 Days to Clear the Debt Storm
Capstone, known for its cutting-edge “microturbine” electric generators and batteries, aims to wind up the process swiftly – in just 45 days. These energy solutions, akin to localized power guardians, serve either as standalone sources or as backups for local utilities.
Debt Woes and the Path to Recovery
Capstone’s statement reverberated with hope as they revealed having struck a deal with their secured lenders. This agreement looks to slice the existing secured debt nearly in half. Imagine cutting down a towering redwood tree to ensure it doesn’t topple – that’s what Capstone aims to do with its debt.
CEO Robert Felxon illustrated the picture clearly, “Our pressing debt and accrued interest that overshadows us, totaling more than $56 million, will be shaved down to a more manageable $25 million. This drastic cut is our gateway to long-term financial stability.”
California Gas Turbine Maker : A Glimpse of Capstone’s Legacy
Dating back to its inception in 1988, Capstone boasts a rich heritage. With around 120 diligent employees, they’ve dispatched over 10,000 units to a whopping 83 countries.
Battling the Storm: COVID-19, Inflation, and Debt
CFO John Juric shed light on the tumultuous journey. The pandemic’s disruptions coupled with surging inflationary waves have shaken the company’s foundations. In 2022, they frantically scoured for out-of-court restructuring options and potential investors. However, their pursuits hit a brick wall.