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Specializing in insolvency and complex commercial matters since 1974

Moltech Power Systems (Battery Park Industries) Confirms Chapter 11 Plan Of Reorganization In Northern District Of Florida Case (June 4, 2007)

Chief Judge Lewis Killian of the Northern District of Florida Bankruptcy Court confirmed the plan of reorganization filed by Moltech Power Systems, Inc. (now known as Battery Park Industries, Inc.), on June 4, 2007. At one time Moltech was one of the largest manufacturers of nickel metal hydride battery cells in the world. At the time it filed its Chapter 11 petition in 2001, Moltech was the last-remaining United States owned manufacturer of nickel cadmium and nickel metal hydride battery cells that manufactured its cells within the United States. The facility, located in Alachua, Florida, north of Gainesville, had been built in the 1960’s by General Electric Co. and later operated by Gates Tire Company. It was later acquired by Energizer Holdings, Inc., and Eveready Battery Company and subsequently sold to Moltech in the late 1990’s. Moltech had been financed with a $54 million credit facility from Congress Financial Corporation (Florida), which merged into Wachovia Bank during the course of Moltech’s Chapter 11 case. During the case, Moltech concluded a series of asset sales to various entities, including a Chinese company, an Atlanta energy company, and a Connecticut battery manufacturer. By plan confirmation, a substantial portion of the senior credit facility had been paid down, the remaining portion had been assumed by Topspin Partners L.P. of Roslyn Heights, New York, for itself and other entities, and more than $2 million had been funded for unsecured creditors. The Stichter Riedel team that represented Moltech throughout the case was led by Russell M. Blain and included Wanda Hagan Golson and Stephen R. Leslie. The case represents one of the largest Chapter 11 cases ever filed in the Northern District of Florida.