Charge Enterprises makes pre-packaged Chapter 11 bankruptcy filing

By Sarah Lizee

Olympia, Wash., March 7 – Charge Enterprises, Inc. made a pre-packaged Chapter 11 bankruptcy filing on Thursday in the U.S. Bankruptcy Court for the District of Delaware.

Charge Enterprises, an electrical, broadband and electric vehicle charging infrastructure company, said it faced a significant liquidity shortage during the fourth quarter of 2023.

The company said it engaged with its prepetition lenders, AI Amped I, LLC and AI Amped II, LLC, to address its liquidity constraints.

Charge and its advisers originally sought to pursue a Chapter 11 filing that would include a process for the sale of all of its operating subsidiaries via a sale of the equity of Charge Infrastructure Holdings, Inc.

The company ultimately determined that approaching its prepetition lenders to pursue a pre-packaged bankruptcy proceeding was in the best interests of its stakeholders, and it began negotiations over a plan in mid-February.

On Feb. 27, Charge and the prepetition lenders reached an agreement regarding a balance-sheet restructuring in support of a pre-packaged plan.

Shortly after that, the company reached a final agreement with the prepetition lenders on the terms of a $10 million debtor-in-possession facility with AI Amped I, LLC as DIP agent.

The facility is set to mature on May 31 and bear interest at one-month SOFR (with a floor of 5%) plus 1,000 basis points per annum, paid in cash.

There is a 1% upfront fee and 3% exit fee.

The company is also seeking approval to use cash collateral of its prepetition lenders as well.

Plan terms

Under the plan, other priority claims, other secured claims and $1.78 million to $2.41 million of general unsecured claims will be paid in full.

Holders of $51 million of prepetition lender claims will receive 100% of the new common stock of the company.

Holders of section 510(b) claims, other subordinated claims, series C preferred interest, series D preferred interest, series E preferred interest and common interests will receive no recovery.

Other details

In its petition, the company listed $100 million to $500 million in assets and $50 million to $100 million in liabilities.

No unsecured creditors were listed with claims of $1 million or more.

Faegre Drinker Biddle & Reath LLP is the company’s counsel and Berkeley Research Group, LLC is its financial adviser.

The New York-based electric vehicle-charging infrastructure company filed Chapter 11 bankruptcy under case number 24-10349.

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