Quanergy announced that the company initiated an orderly sale process for its business. To facilitate the sale and maximize value, the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware and intends to pursue a sale of the business under section 363 of the Bankruptcy Code. Quanergy also announced that Kevin Kennedy, CEO, will retire effective December 31, but will continue to serve as non-executive chair of the board of directors. Kennedy will transition executive leadership to a newly appointed chief restructuring officer and president, Lawrence Perkins. Perkins is the founder and CEO of SierraConstellation Partners, an interim management and advisory firm, which he founded in 2013. Perkins has served in a variety of senior-level positions, including interim CEO/President, chief restructuring officer, board member, financial advisor, strategic consultant, and investment banker, to numerous private and public middle-market companies. Prior to the filing of the company’s Chapter 11 case, the board of directors and management evaluated a wide range of strategic alternatives to maximize value for all stakeholders. The company also significantly reduced operating expenses and resolved significant patent litigation with Velodyne. Now with the protections afforded by the Bankruptcy Code, the company intends to broaden its marketing efforts to potential purchasers interested in specific business segments or assets as well as continuing to seek a going concern sale of the business. The company expects to continue operations during the Chapter 11 process and seeks to complete an expedited sale process with Bankruptcy Court approval. To help fund and protect its operations, Quanergy intends to use available cash on hand along with normal operating cash flows to fund post-petition operations and costs in the ordinary course.
Published first on TheFly
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