Charge Enterprises filed a prepackaged chapter 11 case in Delaware in March 2024. The debtor filed a prepackaged plan on the petition date, obtained a priming DIP term loan from an Arena Investors–affiliated lender, confirmed the plan in April, and reached an effective date in early May that implemented a debt-for-equity transaction and shifted control to Arena.
After emergence, disputes continued over the scope of plan releases and injunctions tied to parallel litigation, leading to a later order that parsed which causes of action were enjoined versus permitted to proceed. The docket's post-effective activity included claims objections, enforcement motions, and ongoing reporting.
Up to $10 million priming term loan, with reporting describing an initial $4 million draw and a remaining $6 million available after final approval Bend Bulletin
Lender-led debt-for-equity recapitalization: Arena became majority owner and appointed an interim CEO Arena Investors / PR Newswire
Claims Agent
Epiq Corporate Restructuring, LLC
Case Snapshot
Prepackaged Recapitalization: $10M DIP, Arena Control, and Plan Enforcement After Emergence
Charge's prepackaged chapter 11 case moved from petition to confirmation in under two months, with Arena Investors emerging as majority owner through a debt-for-equity transaction.
Business Profile and Pre-Filing Context
What Charge did before the filing: infrastructure contracting across EV charging, electrical, and telecom-adjacent work. Public disclosures described Charge as operating an “Infrastructure” segment that included EV charging infrastructure, broadband and wireless work, and electrical contracting, alongside a telecommunications segment that was pressured by declining performance. The company’s earnings releases for 2023 described revenue in the $130–$190 million quarterly range and broke out infrastructure versus telecommunications performance Business Wire, Business Wire.
The First Day Declaration described a similar footprint in more restructuring-oriented terms: an electrical, broadband/wireless, and EV charging infrastructure company that provided end-to-end project management, with a telecommunications segment described as ceasing operations in late 2023. The company's problems were described as involving liquidity, control, and disputes over funds and financings, rather than an inability to execute infrastructure projects.
Infrastructure segment (reported)
EV charging infrastructure, broadband/wireless, and electrical contracting services Business Wire
Expansion and acquisition context: Greenspeed and a stated infrastructure backlog. Charge’s 2023 press releases described acquisition-driven expansion and backlog metrics that were used to support a growth narrative. For example, the company announced an acquisition of Greenspeed Energy Solutions in August 2023 with an upfront purchase price described as about $15 million and a maximum described as about $22 million with earn-outs, while also describing a Greenspeed backlog of about $12 million and a combined infrastructure backlog of about $150 million as of June 30, 2023 Business Wire.
The quarterly earnings releases also provide a “scale and direction” snapshot. In its third quarter 2023 release, the company reported Q3 2023 revenue of $132.3 million versus $185.9 million in Q3 2022 and reported infrastructure revenues of $31.8 million versus $26.8 million in the prior-year quarter, while noting segment distinctions between infrastructure and telecommunications Business Wire. In its second quarter 2023 release, the company reported Q2 2023 revenue of $147.6 million versus $181.0 million in Q2 2022, alongside a Q2 2023 net loss of $8.8 million versus a $17.2 million net loss in Q2 2022 Business Wire.
Greenspeed acquisition (announced)
Upfront price about $15 million; maximum about $22 million with earn-outs; Greenspeed backlog about $12 million Business Wire
Infrastructure backlog (reported)
Combined infrastructure segment backlog described as about $150 million as of June 30, 2023 Business Wire
Revenue trend (selected quarters)
Q3 2023 revenue $132.3 million vs $185.9 million prior year; Q2 2023 revenue $147.6 million vs $181.0 million prior year Business Wire, Business Wire
Operating Context (Selected Public Metrics)
Governance pressure and market access deterioration: stock decline, leadership changes, and delisting. Charge’s prepetition narrative included governance changes and capital markets deterioration. Arena Investors issued a public statement in August 2023 outlining steps it said were necessary to improve corporate management and operations, including governance changes and a search for a permanent CEO, while also describing a stock price decline of about 78% over one year and a market capitalization decline of about $346 million PR Newswire. Around the same time, reporting described the resignation of Charge’s chairman and CEO and the appointment of an interim CEO, with coverage tying the change to shareholder activism pressure Sustainable Tech Partner, MarketScreener.
Nasdaq delisted Charge's shares and suspended trading shortly before the bankruptcy filing. The company announced in February 2024 that Nasdaq’s hearings panel decided to delist the common shares, with trading suspended at the opening of business on February 29, 2024. The same announcement stated that after delisting the shares were expected to trade on the OTC Pink Market under the symbol “CRGE,” and it referenced a bid price closing below $0.10 and a long-running compliance issue tied to a minimum bid price rule Business Wire.
Key Timeline
Aug. 2023
Arena public statement described governance concerns and proposed changes, while describing a large stock decline and market cap reduction PR Newswire
Aug. 2023
Reporting described the resignation of the chairman/CEO and the appointment of an interim CEO Sustainable Tech Partner
Feb. 2024
Company announced Nasdaq delisting decision; trading suspension set for Feb. 29, 2024; bid price described as below $0.10 Business Wire
The immediate trigger described in reporting: KORR funds and a liquidity disruption that accelerated defaults. Multiple sources described a dispute involving KORR Acquisitions and the availability of company funds as central to the liquidity crisis. Sustainable Tech Partner reported that the company alleged it still had $14 million invested with KORR Acquisitions as of August 2023 and sought damages exceeding $15 million, while describing allegations that funds were shifted improperly for the benefit of other companies Sustainable Tech Partner. A separate class action press release described a sequence in which the company believed $9.9 million was available but later disclosed it was invested in KORR Value and inaccessible, alongside later default notices and a stated trading suspension date GlobeNewswire.
Reporting around the bankruptcy filing likewise tied the case to the liquidity dispute and lender defaults. Bloomberg Law described the filing and stated that Arena Investors was positioned to gain control under the plan, while the Bend Bulletin described the case as a prepackaged filing and provided a creditor and financing snapshot that included Arena-affiliated notes and a staged DIP draw structure Bloomberg Law, Bend Bulletin.
KORR-related allegations (reported)
Reporting described a dispute over company funds and allegations of improper shifting of funds to benefit other companies Sustainable Tech Partner
Liquidity crisis disclosure (reported)
A class action press release described a public disclosure of a liquidity crisis involving $9.9 million believed to be available but invested and inaccessible GlobeNewswire
Debt and maturity context (reported)
Bend Bulletin described Arena notes totaling $25.8 million with a maturity date in November 2023 Bend Bulletin
Distress Narrative Anchors (As Reported)
Capital structure heading into the filing: Arena-affiliated notes and equity-related instruments. Court filings described Arena-affiliated funds as the primary secured financing constituency. The DIP Motion described multiple securities purchase agreements from 2021 under which Arena-affiliated funds purchased non-convertible notes with stated face amounts in excess of the purchase prices and with 2023 maturity dates. The same filings described aggregate indebtedness to prepetition secured parties as at least $51 million (including principal and certain accrued charges) as of the petition date, with additional default interest and other obligations potentially accruing.
The plan materials also described preferred equity issuances and other securities transactions involving Island Capital affiliates. The public record includes settlement terms reported at confirmation, including an Island equity allocation and the KORR settlement structure described below MarketScreener.
Arena notes (reported)
Arena notes described as $25.8 million in principal amount, with a maturity date in November 2023 Bend Bulletin
Aggregate secured indebtedness
At least $51 million of prepetition secured indebtedness including principal and certain accrued charges, plus additional default interest and fees
Equity-linked instruments
Island allocation of 5% of new common stock and equivalent warrants; preferred stock issuances and other securities transactions tied to Island affiliates MarketScreener
Capital Structure Highlights (Selected)
The DIP financing: a $10 million priming term loan designed to bridge to plan effectiveness. The debtor's DIP facility was structured as a priming term loan. Reporting described a $10 million DIP facility with $4 million available immediately and $6 million available after final approval, while the DIP Motion described a multi-draw structure with minimum draw and spacing requirements Bend Bulletin.
The DIP Motion described an interest rate based on one-month SOFR with a floor plus a 10% margin, with a higher default rate, and described fees including a commitment fee and an exit fee. The DIP also included a make-whole concept designed to protect the lender against early repayment or acceleration before the scheduled maturity, and the maturity definition included "earliest-of" triggers tied to plan effectiveness, a sale, conversion, or other events.
$4.0 million immediately; $6.0 million after final approval Bend Bulletin
Pricing
1-month SOFR with a floor plus a 10.00% margin; default margin +5.00%
Fees
1.00% commitment fee; 3.00% exit fee described as waived upon plan consummation
Maturity structure
Scheduled maturity date with "earliest-of" triggers including plan effectiveness and other events
DIP Facility Terms (Selected)
The timeline in public sources illustrates why the DIP was framed as a short-term financing. Trading was suspended on February 29, 2024 after a delisting decision, the petition was filed on March 7, 2024, the Confirmation Order was entered on April 24, 2024, and the effective date occurred on May 3, 2024 Business Wire, Bend Bulletin, Arena Investors / PR Newswire.
Plan structure: debt-for-equity recapitalization with unimpaired trade and unsecured classes. Charge's case was filed as a prepackaged plan, and the plan's class structure was designed to implement a lender-led recapitalization. MarketScreener reported that the plan designated ten claim classes and that three classes were treated as unimpaired: other priority claims, other secured claims, and general unsecured claims MarketScreener. The Combined Disclosure Statement and Plan described the recapitalization mechanics as a debt-for-equity transaction under which the DIP lender and prepetition lender claims were satisfied and extinguished through issuance of new equity to Arena (or designees), while prior equity interests were canceled.
KORR dispute and plan settlement. KORR-related allegations were not only a prepetition liquidity event; they also created a dispute ecosystem that could have complicated confirmation. Public sources described KORR Acquisitions and Kenneth Orr as tied to Charge’s investment management and described allegations about the handling and accessibility of invested funds, including a claim that $9.9 million believed available was invested and inaccessible Sustainable Tech Partner, GlobeNewswire.
The settlement economics reported at confirmation can be understood as a mechanism to address that risk within the prepack framework: it set a defined claim amount with an interest component, created conditional upside sharing through a profit kicker, and capped recovery expenses MarketScreener.
Unimpaired classes (reported)
Other priority claims, other secured claims, general unsecured claims MarketScreener
Impaired stack (reported)
Prepetition lender claims and equity-related classes were treated as impaired under the plan’s class structure MarketScreener
Recapitalization mechanics
Debt-for-equity issuance to Arena (or designees) in satisfaction of DIP and prepetition lender claims; prior equity canceled
Plan Treatment Framework (High-Level)
KORR settlement economics. Although prepacks are designed for speed, disputed counterparties can still have leverage through objections and litigation posture. MarketScreener reported that the plan confirmation included a settlement involving KORR that provided for an initial claim amount of $9.7 million plus 15% compounded interest, and it described a “profit kicker” of up to $10 million split 50/50, with recovery expenses capped at $75,000 annually MarketScreener.
The same report described additional equity allocations tied to other stakeholders. It reported that Island Capital would receive 5% of new common stock and equivalent warrants MarketScreener. The Combined Disclosure Statement and Plan likewise described preferred equity issuances and Island-related investments as relevant to class structure and settlement mechanics.
KORR settlement claim amount (reported)
$9.7 million initial claim amount plus 15% compounded interest MarketScreener
Recovery expenses capped at $75,000 annually MarketScreener
Island equity allocation (reported)
5% of new common stock and equivalent warrants MarketScreener
Selected Settlement Terms (As Reported)
Bar dates and post-effective deadlines: June 2024 claim deadlines and a later governmental deadline. Because the plan became effective in early May 2024, the bar dates for claims and administrative requests landed quickly. The Confirmation Order set a June 3, 2024 bar date for general proofs of claim and administrative claims (other than professional claims), a June 17, 2024 deadline for professional claims, and a September 3, 2024 governmental bar date.
General claims bar date
June 3, 2024
Administrative claims bar date (non-professional)
June 3, 2024
Professional claim deadline
June 17, 2024
Governmental bar date
September 3, 2024
Bar Dates and Deadlines (Selected)
Who controlled Charge after emergence: Arena majority ownership and an interim CEO appointment. On the plan effective date, Arena publicly announced completion of the recapitalization and stated that it became the new majority equity owner. The announcement stated that Arena managed about $3.5 billion in invested and committed assets and that Scott Haeger was appointed interim CEO. The release described Haeger as having served as Senior Operating Executive, Transformation at Quaestor Strategic Advisors and noted his education at Purdue University Arena Investors / PR Newswire.
The release also included a market context comparison for EV charging infrastructure, describing the number of EV charging stations versus gas stations in the U.S., and described a growth strategy tied to a large addressable base of franchised auto dealers Arena Investors / PR Newswire.
Post-confirmation plan enforcement. Charge's docket illustrates how post-confirmation disputes can continue even after a prepack goes effective. The bankruptcy court later entered an order addressing enforcement of the plan and confirmation order in connection with a New York complaint. The order held that the first three causes of action were "Released Claims" and that their assertion was enjoined, while the fourth and fifth causes of action were treated as non-released and not subject to the plan injunction. The same order also states that, as of January 10, 2025, there was no longer a basis for a stay of the New York action as to the negligent misrepresentation and breach of fiduciary duty causes of action.
Held released/enjoined
Fraudulent inducement and/or misrepresentation causes of action
Held not released/not enjoined
Negligent misrepresentation and breach of fiduciary duty causes of action
Stay note
As of January 10, 2025, no longer a basis for a stay as to the negligent misrepresentation and breach of fiduciary duty causes of action
Post-Confirmation Plan Enforcement (Selected)
Case status after emergence: no final decree and continued claims activity. Although Charge's plan confirmed and went effective quickly, subsequent filings indicate the case remained active. Post-confirmation reports and the docket reflected ongoing claims objection and litigation activity, and filings in 2024–2025 continued to address plan enforcement and claims administration.
Frequently Asked Questions
When did Charge Enterprises file for chapter 11 bankruptcy?
The case was filed in the U.S. Bankruptcy Court for the District of Delaware and was assigned to Judge Thomas M. Horan.
Was Charge Enterprises a prepackaged case, and what did that mean for the timeline?
Reporting described the case as a prepackaged filing, with a plan filed on the petition date and a target confirmation date in late April 2024 Bloomberg Law.
What was the DIP financing, and what were its key terms?
Reporting described a $10 million DIP facility with a staged draw structure ($4 million initially and $6 million after final approval), while the DIP Motion described pricing and fee mechanics that aligned the facility's maturity to a fast plan timeline Bend Bulletin.
Who owned and controlled Charge after emergence, and what happened to prior equity?
Arena announced that it became the majority equity owner on the plan effective date and appointed an interim CEO, while the plan implemented a lender-led recapitalization that canceled prior equity and issued new equity as part of the restructuring transaction Arena Investors / PR Newswire.
How did the plan treat trade and general unsecured claims?
MarketScreener reported that the plan designated general unsecured claims as an unimpaired class, along with other priority and other secured claims MarketScreener.
What was the KORR dispute/settlement and why was it central to the case?
Public sources described a liquidity crisis tied to funds associated with KORR and described litigation and allegations around those funds Sustainable Tech Partner. MarketScreener reported that plan confirmation included a KORR settlement with a stated claim amount and interest component and an upside “profit kicker” structure MarketScreener.
What were the key bar dates and post-effective deadlines?
The Confirmation Order set a June 3, 2024 bar date for most proofs of claim and administrative claims (other than professional claims), a June 17, 2024 deadline for professional claims, and a September 3, 2024 governmental bar date.
Why were there post-confirmation disputes after an expedited prepack?
The docket shows later plan enforcement disputes over the scope of plan releases and injunctions in connection with parallel litigation, including an order that distinguished between claims held enjoined as released and claims held not subject to the plan injunction.
Who is the claims agent for Charge Enterprises?
Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
For more chapter 11 case research and creditor-focused explainers, visit the ElevenFlo blog.
Sources
First Day Declaration /documents/a6b51525-71f7-440b-9fb8-f3fbd5518e48/
Business Wire https://www.businesswire.com/news/home/20230801904081/en/Charge-Enterprises-Announces-Acquisition-of-Greenspeed-Energy-Solutions-a-Leader-in-Providing-EV-Infrastructure-Solutions
Business Wire https://www.businesswire.com/news/home/20240222791881/en/Charge-Enterprises-Announces-Decision-of-Nasdaq-Hearings-Panel-To-Delist-Common-Shares
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.