Ener1, Inc. (PINK:HEVV) (HEVVQ) filed for bankruptcy protection under chapter 11 yesterday. Despite some of the information, a large number of shares changed hands.
Not surprisingly, the price plummeted and HEVV closed down 72.63% at $0.026. The weird thing is there were people who took the 19.4 million shares.
The 8-K filed by Ener1 states that upon HEVV’s emergence from Chapter 11, existing common stock will be cancelled without receiving any distribution. This makes yesterday’s high volume a bit hard to explain.[BANNER]
A Plan Support Agreement between HEVV and the holders of all of its long-term debt provides that HEVV will get equity financing for up to $81 million.
The company listed assets of approximately $73.9 million and $90.5 million of debts. According to the reorganization plan of HEVV, the company expects to emerge from Chapter 11 withing 45 days. It’s doubtful this is any consolation to common shareholders.
