Bloomberg News

Beacon Power Wins Judge’s Approval for Auction Procedures

January 01, 2012

(Updates with sale process deadlines in second paragraph.)

Dec. 27 (Bloomberg) -- Beacon Power Corp., the maker of electricity-storage gear that received $43 million in backing from a program that supported failed solar-panel maker Solyndra LLC, won a bankruptcy judge’s approval of sale procedures.

Judge Kevin Carey signed an order in Wilmington, Delaware, today setting the deadline for non-binding indications of interest at Jan. 9; the final bid deadline at Feb 1; an auction of company assets on Feb. 3; and a sale-approval hearing Feb. 7.

The procedures are “in the best interests” of Beacon, based in Tyngsboro, Massachusetts, and its creditors, Carey wrote in the order.

Beacon filed for court protection Oct. 30 after struggling to raise private financing. It reported assets of $72 million and debt of $47 million in its Chapter 11 petition.

The company uses flywheel technology to store energy for quick use in electrical power grids.

Solyndra, which filed for bankruptcy in September, received $535 million in federal loan guarantees and couldn’t compete with government-subsidized foreign manufacturers.

The case is In re Beacon Power Corp., 11-13450, U.S. Bankruptcy Court, District of Delaware (Wilmington).

--Editors: Mary Romano, Peter Blumberg

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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