All BK's do not always turn out bad, depending on where you bot in. Capstone Green Energy has really moved off the bottom.
In its 2023 bankruptcy, Capstone Green Energy shareholders did not lose all of their equity; instead, their common stock in the original company was canceled and exchanged for new stock in the restructured public entity.
Details of the restructuring process:
- Original shares canceled: When the company emerged from Chapter 11 bankruptcy in December 2023, all existing common shares of the original company, Capstone Green Energy Corporation (formerly traded as CGRN on Nasdaq), were canceled.
- New shares issued: For each canceled share, stockholders were issued one new share of common stock in the successor company, Capstone Green Energy Holdings, Inc. (now traded as CGEH on the OTC Markets).
- Significant dilution occurred: While shareholders did receive new equity, their stake in the reorganized company was significantly diluted. As part of the restructuring deal, a primary lender, Goldman Sachs, received a 37.5% equity stake in a newly formed private subsidiary in exchange for a portion of its debt. This meant that the equity for the old shareholders now represented a smaller piece of the restructured, overall business.
- Warrants and restricted stock terminated: In the bankruptcy reorganization, all warrants, restricted stock, and similar equity rights associated with the old company were canceled and received no distribution of value.
Very similar situation to Wolfspeed.
I'm a retired turbomachinery dude. Capstone has an excellent line of microturbines, afa I know they are/were the only manufacturer of such, in the world. But I do not follow it too much anymore. There are a lot of applications, and if a combined heat and power type cycle can be used, they offer very high thermal efficiency. Can exceed 80 % per recollection. If utility power gets ultra pricey at some point, lot of smaller businesses 'might' install these and generate their own power.
On a global basis there a lot of these units installed, i.e. makes for service revenue.
The company was apparently mismanaged, GS looks to be doing well with their investment. So far.
capstonegreenenergy.com
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