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ECOtality Plan Effective

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According to the U.S. Bankruptcy Court docket, ECOtality’s Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on December 31, 2014.

According to documents filed with the Court, “The Plan provides that all existing stock in ECOtality, Inc. shall be cancelled effective as of the Effective Date. The Plan furthermore provides that on the Effective Date of the Plan, new stock in the Reorganized ECOtality (the ‘Reorganized Stock’) will be issued 50% to Blink UYA, LLC (‘Blink’) and 50% to Stock Trust, which stock shall be held by the Stock Trust for the benefit of the Qualified Creditor Stock Beneficiaries. As a result of their beneficial interest in the Stock Trust, Qualified Creditor Stock Beneficiaries may receive distributions arising from distributions on account of the Qualified Creditor Stock or distributions pursuant to the Tax Sharing Agreement among the Reorganized Debtors and the Stock Trust. The Plan also provides for Minimum Distributions to the Stock Trust for the benefit of Qualified Creditor Stock Beneficiaries of no less than $725,000, to be paid in full or in part by the Plan Contributor in the event that the Qualified Creditor Stock Beneficiaries have not received at least $925,000 on or prior to the third anniversary of the Effective Date on account of their Qualified Creditor Stock or the Tax Sharing Agreement….Distributions to holders of Allowed Claims (including Compensation Claims) contemplated under the Plan shall be funded by the proceeds of Liquidating Trust Assets.”

Court documents continue, “[T]he Liquidating Trustee shall have the responsibility for administering the Liquidating Trust, maintaining applicable reserves, liquidating the Liquidating Trust Assets, and making distributions under the Plan.”

This electric vehicle charging system provider filed for Chapter 11 protection on September 16, 2013, listing $54 million in pre-petition assets. Read more Chapter 11 bankruptcy news.