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Aquion Energy Files for Chapter 11 Bankruptcy

Posted on in Chapter 11

Aquion Energy Files for Chapter 11 Bankruptcy

Aquion Energy, the Pittsburgh-based energy storage company founded in 2007 that focused on the development of salt water batteries, has filed for Chapter 11 bankruptcy. Although the company has halted production and marketing of its products and cut its workforce substantially, its leaders are optimistic that bankruptcy will help the company become profitable once again and allow it to continue to make innovations in its industry. The company's CEO stated that this is an “important phase” for the company as it works to secure a buyer for all its assets.

Insurmountable debt is an issue that can plague any company, regardless of its size or industry. From 2014 to 2016, Aquion Energy raised approximately $90 million from investors including Bill Gates, members of the Pritzker Family, and venture capital firm Kleiner Perkins Caufield & Byers. It also received $5.2 million from the United States Department of Energy to open a manufacturing plant and create 400 jobs. It was also approved for more than $16 million in grant money from the Pennsylvania Department of Community and Economic Development.

What is Next for Aquion Energy?

The next step for Aquion Energy is to sell its assets. The goal is to be able to give its creditors and stakeholders as much money back as possible following this sale. Although the company laid off 80% of its workforce as a means to save money, it retained certain employees to help with the sale of the assets.

When the company filed for bankruptcy, Aquion Energy was in the midst of implementing two projects: a microgrid for a winery in California and a partnership with Adara Power to develop a way to make its battery storage systems remotely dispatchable. The future of these projects is not currently known.

What Caused Aquion's Financial Difficulties?

Although the company was hailed as a growing success in recent months, it simply could not raise the growth capital necessary to fund its continuing growth. Another issue present was the declining cost of lithium-ion storage. Scaling entrepreneurial ventures is frequently one of the most difficult parts of operating a fledgling business, and this issue plagued Aquion as it has plagued thousands of other small businesses in the past.

Bankruptcy does not mean it is the end for Aquion Energy. Because of its groundbreaking technology like its aqueous hybrid ion battery technology, Aquion was a leader in its industry and could continue to be under the direction and financing of its buyer.

Work with an Experienced Elk Grove Bankruptcy Lawyer

Bankruptcy is a complicated topic. If you are a business owner considering filing for bankruptcy, speak with an experienced bankruptcy lawyer to learn more about the bankruptcy process and how you can use it to help yourself regain control of your debt level. Contact our team of experienced bankruptcy lawyers at Newland & Newland, LLP today to set up your initial consultation with a member of our firm. We serve clients in the Arlington Heights, Palatine, Rolling Meadows, Libertyville, Mundelein, Buffalo Grove, Schaumburg, Elk Grove, and Itasca areas.

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