US battery storage system integrator Powin has filed for Chapter 11 bankruptcy at a court in New Jersey.
The company and its debtors filed for relief under the US Bankruptcy Code on 9 June and 10 June in the United States Bankruptcy Court for the District of New Jersey. A hearing will be held tomorrow (12 June) at 9:30am before Judge Michael B. Kaplan regarding First Day Matters.
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Oregon-headquartered Powin said the move comes as part of a strategic effort to address its financial liabilities and secure its core business. Chapter 11 allows a company to propose a plan of reorganisation to keep its business going and pay creditors.
Court filings listed Powin LLC and eight other debtors, including Powin China Holdings 1 and Powin China Holdings 2, and a subsidiary in Ontario, Canada, among others.
The first indication of trouble at Powin came late last month when it sent a letter notifying authorities in Oregon, warning of 250 potential layoffs, which would include the CEO and other executives.
The system integrator said in its Oregon letter that it was in danger of going out of business by 28 July and ceasing operations if its business circumstances did not improve.
A company statement, sent to Energy-Storage.news shortly after that notification, claimed that Powin’s “significant financial challenge” was “reflective of ongoing headwinds in the broader energy storage industry.”
Powin began as a developer of battery energy storage system (BESS) projects and pivoted towards system integration and assembly, buying cells from multiple sources to put into its two BESS hardware solutions, Powin Pod and Centipede, integrated with its StackOS energy management system (EMS) and controls platform software.
To date, Powin has put more than 11GWh of projects into operation worldwide, while its website claims 6GWh of projects are under construction.
Although Powin has delivered projects worldwide, including the 1,680MWh Waratah Super Battery and the 300MWh Ulinda BESS in Australia, along with projects for customers in other geographies as diverse as Taiwan and Europe, the bulk of its orders are thought to be in the US.
The company statement alluded to uncertainties over levels of US import tariffs and the future of tax credit incentives as industry headwinds. Powin’s battery cell suppliers are thought to be mostly, if not all, based in China. The company was known to be seeking US-based cell suppliers, but demand currently far outstrips availability.
Service arm launched as Powin Project
Along with its announcement of the Chapter 11 filing, Powin said yesterday that it will separate off its existing monitoring and energy services operations to form a new business entity, Powin Project LLC.
Powin’s current chief projects officer (CPO), Brian Kane, has been appointed CEO of the new business. Kane described the launch as “a pivotal moment for Powin.”
“Forming this organisation around our services business through this critical transition allows us to preserve the value we’ve built, focus on delivering reliable performance to our customers and position the organisation for long-term viability and success,” Kane said.
