First Mode Holdings, a Seattle-based developer of hybrid electric equipment for heavy industry, has filed for Chapter 11 bankruptcy in Delaware, citing nearly $98 million in debt and challenges in securing customers for its hydrogen-fueled products. The filing, submitted Sunday, outlines a plan to sell its assets with the support of its parent company, Anglo American, and secured lender.
Agreement with Anglo American and Cummins Inc.
The mining giant Anglo American has agreed to provide $26 million in debtor-in-possession (DIP) financing to support First Mode through the bankruptcy process. As part of the arrangement, the company will conduct an asset auction on January 27, with a $15 million stalking horse bid already in place from Cummins Inc., a leading manufacturer of engines and power systems.
Chief Financial Officer Colin Mark Freed noted in court documents that the bankruptcy filing provides a structured path toward a value-maximizing sale, followed by a plan to liquidate the remaining estate.
Origins and Financial Troubles
First Mode was founded in 2018 to create hybrid and fully electric engines for industrial hauling vehicles, particularly in mining and rail. Despite initial advancements, the company struggled to attract sufficient commercial interest, leading to significant financial strain.
