Global Power files for Chapter 11 bankruptcy

29 September 2006 -- Global Power Equipment Group Inc. announced that after close of business yesterday, it and all of its U.S. subsidiaries, including Williams Industrial Services Group, L.L.C., Braden Manufacturing, L.L.C. and Deltak, L.L.C., commenced Chapter 11 cases in Delaware bankruptcy court to reorganize their financial affairs and address the ongoing cash drain from Deltak's Heat Recovery Steam Generator (HRSG) business.

The company believes that the Williams and Braden businesses are fundamentally sound and intends to continue to operate those businesses without interruption. Global Power anticipates obtaining court authority by Monday, October 2, to access over $20 million of cash on hand as needed to ensure that Williams' and Braden's ongoing operations are adequately funded. Braden will also seek limited accommodations from its customers to ensure completion of all current projects.

Deltak, which notified its employees of a substantial initial reduction in its workforce prior to the filing, will begin an orderly wind down of its HRSG business, unless it is able to obtain material concessions from its customers regarding the terms on which it would complete its major ongoing projects. Deltak's specialty boiler business will continue operations, subject to obtaining immediate accommodations from certain of its customers.

The company's foreign subsidiaries in Asia, Europe and Mexico are not included in the Chapter 11 filings. Their businesses will continue as usual without oversight by the U.S. Bankruptcy Court.

The company said in a press release that it has experienced escalating losses related to large scale HRSG projects within Deltak. These losses, coupled with Global Power's inability to access its credit facility, have resulted in the Company's liquidity recently becoming significantly constrained. As a result, the Board of Directors concluded, after consultation with its advisors, that the interests of the Company's stakeholders would be best served by reorganizing under Chapter 11 of the U.S. Bankruptcy Code.

Sponsored by FLSmidth

Related Articles

Study: Mexico could install 12,000 MW of wind capacity by 2020

Total installed wind power capacity in Mexico will reach some 12,000 MW by 2020, or 15 percent of the country’s electricity mix.

AES plans solar energy project to power copper mines in Chile

AES Gener SA plans to build a $572 million solar farm in northern Chile as it seeks to boost electricity supply to copper miners in the Atacama Desert.

Follow Power Engineering on Twitter
Latest News
Fukushima Daiichi nuclear power plant decommissioning TEPCO

First step taken in Fukushima nuclear decommissioning project

The decommissioning project at the Fukushima Daiichi power plant in Japan begins a crucial st...
Baltimore Ravens onsite solar project Constellation

Baltimore Ravens greenlight onsite solar project

Constellation, a retail energy supplier, and the Baltimore Ravens today announced an agreemen...
SCE claims $7.5bn in damages for SONGS from MHI

SCE claims $7.57B in damages for SONGS

Southern California Edison (SCE) and Edison Material Supply LLC (EMS) claimed damages of $7.5...
Plainfield Renewable Energy Plant biomass

Sale of Connecticut biomass power plant completed

Greenleaf Power finalized the purchase of the Plainfield Renewable Energy Plant in Connecticu...
USACE approves bearings for hydropower turbine wicket gates

Corps of Engineers approves GGB bearings for hydropower turbines

The U.S. Army Corps of Engineers (USACE) has approved GGB Bearing Technology’s new HPMB™ fila...
Demand response system picked for Hydro Ottawa utility

Demand response system picked for Canadian utility

Hydro Ottawa picked Opower (NYSE: OPWR) to develop a demand response solution in collaboratio...
Eletronuclear Petrobras officials arrested Angra 3 nuclear power project Brazil

Eletronuclear CEO arrested on corruption charges

Eletronuclear confirmed that its chief executive on leave, Othon Luiz Pinheiro da Silva, was ...
Duke Energy Renewables Seville Solar Power Projects in California

Duke Renewables unit buys solar power projects

Duke Energy Renewables (NYSE: DUK) acquired the 20-MW Seville I and 30-MW Seville II Solar Po...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

RK Group Honored as 'Top Company' by City of Livermore, CA

RK Group Honored as 'Top Company' by City of Livermore, CA

Itronics Reports First Half 2015 GOLD'n GRO Fertilizer Sales; Modest Revenue Decline on Increased Volume

Itronics Reports First Half 2015 GOLD'n GRO Fertilizer Sales; Modest Revenue Decline on...

Apprion Extends the Ion Mustering Application With Ion Mobile Mustering for Flexible, Portable Mustering Stations

Apprion Extends the Ion Mustering Application With Ion Mobile Mustering for Flexible, P...

Scorpio Bulkers Inc. Announces Financial Results for the Second Quarter of 2015

Scorpio Bulkers Inc. Announces Financial Results for the Second Quarter of 2015

KACO new energy to Provide Battery Converters and Energy Storage Systems Using Ideal Power's Power Conversion Systems

KACO new energy to Provide Battery Converters and Energy Storage Systems Using Ideal Po...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>