ESS Tech, Inc. said it has stopped operating and filed a voluntary Chapter 7 petition in Delaware on Nov. 13, putting its assets into liquidation and leaving common shareholders unlikely to receive a distribution, according to a Form 8-K filed with the Securities and Exchange Commission.
The U.S. Bankruptcy Court for the District of Delaware will appoint a Chapter 7 trustee to take control of the company’s assets and liabilities. ESS Tech said the assets will be liquidated and claims handled according to the priority order set by the Bankruptcy Code.
The company warned that its bankruptcy petition could activate default provisions in some agreements or debt instruments. Those provisions could end agreements or make certain obligations due sooner, the filing said.
ESS Tech said it ended the employment of all employees and officers without cause, effective Nov. 13. Those named in the filing include CEO Drew Buckley, CFO Kate Suhadolnik and Kelly Goodman, general counsel and chief strategy officer.
The filing cautioned that trading the company’s common stock carries a substantial risk of loss. ESS Tech also said it can no longer prepare or submit its required periodic reports to the SEC. The court’s appointment of a Chapter 7 trustee is the next step described in the filing.
