ARPA-E selects 13 projects for $30M in awards to advance natural gas vehicle technologies
Advanced synchronizers from Oerlikon Graziano provide fuel savings and easier gear shifting on heavy trucks

Li-ion battery maker Valence Technology files Chapter 11

Lithium-ion battery manufacturer Valence Technology, Inc. today filed a voluntary petition for a chapter 11 business reorganization in the US Bankruptcy Court for the Western District of Texas.

The business reorganization is intended to bolster the Company’s liquidity in the US and abroad and enable it to focus on its core lithium phosphate markets. Valence is currently negotiating a debtor‐in‐possession (DIP) credit facility and expects to announce the facility shortly.

Once in place, this facility will be used to enhance liquidity and working capital and will be subject to Court approval and other conditions. With a credit facility, the Company believes that it will have sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.

Valence says it expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the US are not subject to the bankruptcy proceedings and are expected to continue to operate in the ordinary course of business. Valence plans to honor all post‐petition obligations to suppliers in the ordinary course.

After careful consideration of the implications of chapter 11 and weighing them against a lack of attractive alternatives, the Board of Directors and the senior management team believe that this is a necessary step and the right thing to do for the future of Valence. Our goal is to continue to operate and meet customer requirements as we work through the chapter 11 process as quickly as possible.

—Robert L. Kanode, Valence’s president and CEO

Valence expects to complete its restructuring during 2012. The Company is being advised by Streusand, Landon & Ú, LLP with respect to bankruptcy matters.

In May, Valence reported that it achieved fiscal year 2012 revenue of $44.4 million, compared to $45.9 million for fiscal 2011. Gross Margin was 17% compared to 21%, a decrease due to un-absorbed production overheads in the current period as it reduced production in response to low mid-year customer demand, and a charge recorded for a discontinued product line in the current period.

Cash used for operations decreased to $8.7 million, compared to $18 million. Operating loss was $9.6 million, compared to a loss of $9.0 million. Net loss available to common shareholders was $12.9 million, or $0.08 per share, compared to a loss of $12.9 million, or $0.09 per share.

The company said it expected fiscal first quarter 2013 revenue to be in the range of $11.0 million to $12.0 million. Revenue in the fourth quarter of fiscal 2012 was $13.3 million compared to $13.9 million in the fourth quarter of fiscal 2011.

Comments

jcwinnie

Oooo Shhhh..ooooo

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)