ENERGY STORAGE

Bill Gates-backed Ambri files for bankruptcy and agrees sale to lender consortium

May 7, 2024

Long-duration battery storage systems provider Ambri – the funders of which include Microsoft founder Bill Gates – has filed for bankruptcy and agreed the terms of a proposed sale to a consortium of lenders.

A statement issued by the company said Ambri had agreed to the terms of a “stalking horse purchase agreement with a consortium of its lenders, pursuant to which the lender consortium would acquire substantially all of the assets of the company, subject to higher and better bids from other parties during an expedited sale process”.

To facilitate the sale, Ambri has filed voluntary petitions for reorganisation under Chapter 11 in the US Bankruptcy Court for the District of Delaware. The company is seeking approval of the proposed transaction pursuant to Section 363 of the US Bankruptcy Code, which will allow interested parties to submit higher or better bids for the company.

In addition, the transaction is subject to Bankruptcy Court approval and other regulatory approvals. Ambri currently expects to complete the process and close a sale in the “next several months,” a statement said.

Ambri says its ‘Liquid Metal’ battery technology has a lifespan of more than 20 years with “minimal fade”, does not produce or emit any gasses, and has “no possibility for thermal runaway”.

Dan Leff, executive chair and president of Ambri, said: “Ambri continues to make progress on advancing cell technology into its third generation and moving towards its objective of establishing a commercial business. We are taking steps to build on this progress by strengthening our financial position and working with our lenders to support our future success.”

He added: “We appreciate the constructive engagement we’ve had with our lenders to date, and we look forward to continuing to work together towards the best path for the business and all our stakeholders. We are also grateful to our employees for their continued hard work and dedication. As we move forward, our team remains focused on delivering a long-life, safe and low-degradation battery system for long duration energy storage applications. We look forward to completing the sale process and to charting a healthy and successful next chapter for Ambri.”

Goodwin Procter, LLP and Potter Anderson are serving as Ambri’s legal counsel, Portage Point Partners is serving as restructuring advisor and investment banker. Kirkland & Ellis and Morris Nichols are legal counsel to the lender consortium.