Infinia Corporation has filed a petition for Chapter 11 relief after being unable to obtain additional financing. The petition was filed in the U.S. Bankruptcy Court in Utah.
The company saw strong growth in Q1 and Q2 this year and traction in North America with the ongoing installation of a 1.5MW project at Tooele Army Base in Tooele, Utah, and nearly 200MW of projects under development in the Mediterranean region. However, the company could not achieve full-scale operations rapidly enough to start generating positive cash flow. Therefore its lead lender, Atlas Global Holdings, has made an offer to buy Infinia's assets for an amount equal to the amount it is currently lending the company under a debtor in possession financing arrangement.
Mike Ward, Infinia's President and Chief Executive Officer, said, "This has been a difficult step for Infinia. After carefully considering the available alternatives, the Company's Board of Directors determined that the Chapter 11 filing was in the best interest of the Company and its stakeholders. This process enables Infinia to continue limited business operations while we pursue a speedy auction of the company."
Ward expects that a new buyer will emerge and assist them as they continue to bring their free-piston Stirling engine technology to market. To this end, the company has retained a core workforce of approximately 30 people, including engineers, production, sales, and service staff, with the intent to continue mission-critical operations to support its PowerDish solar array installation at the Tooele Army Depot and continued development of its next generation free-piston Stirling engine able to run on multiple fuels.
The filing will provide Infinia with the resources and time to strengthen its capital structure. The company expects that its current management team will continue to lead the company during this restructuring period.