Sources: Zero Energy Systems, Coralville, Iowa; CP staff
Precast concrete wall and building element producer Zero Energy Systems has filed a voluntary petition for legal reorganization. Management anticipates fulfilling contracted and future precast panel orders, and notes that the filing stems from a dispute with a lender on company strategy.
“Entering into this legal reorganization allows time to legally reorganize, finalize a corporate restructure, and become a venture capital backed firm,” says ZES CEO Scott Long. “After three years of rapid growth in Iowa, it has become obvious that the market we are in will not support a technology-based company with immediate growth needs. Therefore, we are transitioning into a new structure that will support our corporate goals.”
ZES has retained counsel and investment banking services in Silicon Valley supporting the transition, he adds, and projects closing on a first round of venture-backed equity capital, along with a new debt partner, over the next 60-120 days. Under the reorganization, the producer will be positioned to expand into additional U.S. markets as part of its original growth strategy.