Powin, LLC, a Portland, Oregon-based energy storage integrator, and 12 affiliated companies have filed a joint Chapter 11 liquidation plan in New Jersey bankruptcy court, proposing to wind down operations through a sophisticated dual-trust structure after completing $54 million in asset sales during their bankruptcy proceedings.
The combined disclosure statement and liquidation plan, filed October 6, 2025, in the U.S. Bankruptcy Court for the District of New Jersey (Case No. 25-16137), outlines how the debtors plan to distribute remaining assets to creditors holding an estimated $300 million in unsecured debt. The document represents a joint effort between the debtors and the Official Committee of Unsecured Creditors, both recommending creditor approval of the plan.
Background and Bankruptcy Filing
Powin operated as a leading energy storage integrator specializing in battery energy storage systems, with global operations in Vietnam, China, Canada, Australia, and Spain. The company's business model focused on two main revenue streams: engineering and installation of battery energy storage systems governed by Energy Supply Agreements (ESAs), and warranties, servicing and maintenance through Long Term Service Agreements (LTSAs).
The company filed for Chapter 11 protection in June 2025, citing "severe liquidity constraints, an extreme overdependence on trade credit, increasing assertions of liquidated damages entitlements by customers aggrieved by alleged performance delays, and damaged credibility with customers," according to the filing.
Significant Asset Sales During Bankruptcy
During the bankruptcy proceedings, the debtors completed three major asset sales totaling $54 million:
FlexGen Sale: The largest transaction involved selling substantially all operating assets to FlexGen Power Systems, LLC for $36 million. FlexGen, which also served as the debtor-in-possession lender, closed this deal on August 19, 2025.
EKS Sale: Hitachi Energy Ltd. acquired remaining ownership units in EKS Holdco LLC for $15 million in a comprehensive transaction that included various releases.
Mainfreight Sale: Mainfreight Distribution Pty Ltd. acquired certain collateral assets through a $3 million credit bid.
Proposed Liquidation Structure
The liquidation plan proposes establishing two post-confirmation trusts to maximize creditor recoveries:
Liquidating Trust: Will liquidate remaining debtor assets, administer claims, prosecute estate causes of action, and distribute proceeds to holders of allowed general unsecured claims on a pro rata basis.
Direct Claims Trust: Will pursue certain third-party claims contributed by creditors against non-debtor parties, including potential claims against former directors, officers, shareholders, insiders, and prepetition lenders not otherwise released under the plan.
The plan creates seven classes of claims, with administrative claims, priority tax claims, and secured claims to be paid in full. General unsecured creditors in Class 5 will receive their pro rata share of liquidating trust interests, while those contributing direct claims will also receive interests in the direct claims trust.
WARN Act Settlement
The plan addresses ongoing litigation brought by former employee Brian Palomino under the Worker Adjustment and Retraining Notification (WARN) Act. The proposed settlement includes an initial cash payment on the effective date and additional milestone-based payments until WARN Act claims are satisfied in full. If no settlement is reached, these claims would be treated as either priority non-tax claims or general unsecured claims.
Confirmation Timeline and Process
The debtors have established an aggressive timeline for plan confirmation:
- Voting deadline: November 18, 2025, at 4:00 p.m. Eastern Time
- Plan objection deadline: November 18, 2025, at 4:00 p.m. Eastern Time
- Confirmation hearing: November 25, 2025
For plan acceptance, the debtors need approval from a majority in number and two-thirds in dollar amount of claims voting in each impaired class entitled to vote (Classes 3, 4, and 5).
Creditor Recovery Prospects
While specific recovery percentages are not disclosed in the plan, the debtors and creditors committee assert that the proposed liquidation provides superior returns compared to a Chapter 7 liquidation scenario. A formal liquidation analysis comparing potential Chapter 7 recoveries will be filed with supplemental plan documents.
The plan includes provisions for pursuing various causes of action, including recovery of outstanding receivables, turnover of cash collateral accounts securing bonds and credit programs, and prosecution of customs refund claims against the United States government.
Legal Representation and Releases
Dentons US LLP and Togut, Segal & Segal LLP represent the debtors, while Brown Rudnick LLP and Genova Burns LLC represent the Official Committee of Unsecured Creditors. The plan includes third-party release provisions, though creditors may opt out of releasing certain parties by filing appropriate election forms.
The case reflects broader challenges in the energy storage sector, where companies have faced pressure from supply chain disruptions, project delays, and intense competition despite growing demand for battery storage solutions in the clean energy transition.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 86 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.