© Reuters.
Charge Enterprises, Inc. (OTC:) (NASDAQ: CRGE), a provider of electric vehicle charging infrastructure, has filed for Chapter 11 bankruptcy protection, according to a recent 8K filing. The company continues to operate under the jurisdiction of the Bankruptcy Court as a debtor-in-possession following its voluntary petition on March 7, 2024.
The Bankruptcy Court has granted several first-day motions to enable Charge Enterprises to maintain its operations. These include approval for debtor-in-possession financing, use of cash collateral, and authorization to pay certain pre-petition employee obligations and continue employee benefit programs.
Under the interim debtor-in-possession (DIP) financing order, Charge Enterprises has agreed with AI Amped I, LLC, an affiliate of Arena, to enter into a secured term loan credit facility for up to $10.0 million. This interim financing is intended to support the company’s operations through the Chapter 11 process.
In addition to the DIP financing, the Bankruptcy Court has scheduled a hearing for April 23, 2024, to consider the adequacy and confirmation of the company’s combined disclosure statement and reorganization plan. Objections to the plan must be filed by April 12, 2024, according to the established procedures.
The court also issued an interim order establishing notification procedures and approving restrictions on certain transfers of Charge Enterprises’ common stock. The order prohibits shareholders from claiming worthlessness on their income tax returns with respect to their shares and declares any transfer in violation of the procedures as null and void.
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