Capstone Green Energy Enters Into Transaction Support Agreement With Senior Secured Lender
Portfolio Pulse from Benzinga Newsdesk
Capstone Green Energy Corporation (NASDAQ:CGRN) has entered into a transaction support agreement with Goldman Sachs Specialty Lending Group and Broad Street Credit Holdings LLC, initiating a prepackaged Chapter 11 process. The restructuring aims to reduce Capstone's debt, inject liquidity into its operations, and pave the way for future business prosperity. The company's pre-petition debt and accrued interest of over $56.0 million will decrease to $25.0 million. Capstone has secured a commitment for $12.0 million in new debtor-in-possession financing. The company also received a delisting letter from Nasdaq for not meeting the required minimum market value of listed securities.
September 28, 2023 | 2:05 pm
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Capstone Green Energy is entering a prepackaged Chapter 11 process, aiming to reduce its debt and inject liquidity into its operations. The company has also received a delisting letter from Nasdaq.
The company's decision to enter into a Chapter 11 process indicates financial distress, which is likely to negatively impact the stock price in the short term. Additionally, the delisting from Nasdaq could further decrease investor confidence and lead to a decrease in the stock price.
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