BEACON POWER CORP (BCONQ.PK) is still likely to be a total wipe-out for investors in the common stock. What is interesting is that the bankruptcy court has approved the sale of the company out of bankruptcy court. A firm called Rockland Capital is apparently paying some $30.5 million to acquire the bankrupt flywheel energy storage outfit.
This private equity deal may be good for taxpayers too. As it turns out, Beacon’s bankruptcy left the US taxpayers at risk because of a tax-backed loan… This deal may help out the U.S. Energy Department to recover somewhere around 70% of Beacon’s DOE loan that came as part of the government funding program for alternative energy players. Beacon had used some $39.5 million of a loan guarantee in order to assist in its $69 million plant in New York that was making 20MW flywheel energy storage.
Again, Beacon common stock holders likely get just the Pink Sheet stock certificates as wallpaper in the bathrooms rather than any real value here. Beacon had a going concern risk for too long.
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