Quanergy Files For Bankruptcy, Seeks Quick Sale
Quanergy filed for Chapter 11 bankruptcy protection on Dec. 13, 2022 just 10 months after going public through a SPAC merger. The Silicon Valley-based LIDAR company said it has run low on cash as the economy slowed and interest in the sector declined.
Other issues in the mix are Quanergy's focus on the physical security market, its recent loss in a patent dispute with competitor Velodyne, and the company's ties to sanctioned Russian billionaire Alisher Usmanov, who is an equity investor.
In this report, we examine factors that led to the filing, the health of the LIDAR sector as a whole, and the company's plan for a sale.
Economic **********
******** ********* ****** * ********** ** "operational, ********* *** ************* **********" *** causing *** ********* ******* *** ******** its ****** ** *******. *** ****** of *** **** ****, ** ******** 2022, *** *** **** *******.
***** *** ******* ***** ******* ********, "a ******* ** ******** ******** ** the ***** ******, ** **** ** general ************* ****** ****** *** **** period, ****** * ******* ** *** Debtor's *** ***** ***** ******** ******," newly-appointed ***** ************* ******* ******** ******* said ** ********************* **** *** ******** ********** *****.
*** *******'* ***** *****, ***** ****** at *.* ***** ** ***. **, 2022, *** ********* **.* ******* **** $77.80 ** ***. **, ****, *** highest ***** ** ******* ***** ******* ****** ******. *** ******* ******* *********** ******* it ****** ****, ***** ******* *********** Corp., *** ****** ** **** ** $198 * ***** **** ******* *** *********** **** ****.
********'* ***** ** ** *** ******* of ***** **-****** **** *** *** York ***** ********, *** *** ******* is ********* *** ********, ********* ** Perkins. *** ****** ********* ***** **** the *******.
LIDAR ******
*****, ***** ******** ****** ** ********, has **** **** ** *** *********** of ********** ********. *** ******* *** also ** **** ** ********, ** industrial ************, ******* **********, *** ************.
** *** ********** ********* ******** *********, ******** ********* ********, ********* "********* security *** ********* ********* ************," ** its *** **** ** *****. *** next **** ********* ** *** "***** Cities" ******, ***** ***** ***** ** used "** ****** *** ************** ** improve *** ******** *** ****** ** their ******** ** ***** ***** ********."
***** **** ** ********** ************, *** finally "**************" ********* ********* ********, ***** vehicles, *********** *** ****** *********, *** "highly ********* ******* ************" **** ** the ****** **** ** *** ****. The ******* ******** **** ******* *** software.
*******, ******** ******** ** ***** *** cooled ************* ****** *** **** ****, Perkins *****. ** ***** **** ***** prices *** ***** ***** ********* ** Quanergy's **** ***** ******* ** ******* overall *** *** **** ****.
******* ******* ***** **** *** ******* "operates ** * *********** ********** ***********."
*** ***** ****** ********* ***** ********** as * ***, *****-***** ********** **** requires *********** ******* ** *****. **** companies ** *** ***** ******, ********* the ******, **** ****-**** ********* *** low ******* **** ** ***** ********** continues ** ** ********* *** ********. The ******, *********, ******** *********** **** and ***** ********* *** *** **********.
******** *** **** ** * *********** market, ***** *** **** ** ***** systems ******** ** ***** *******. ********** ********'* ** ***************** ******* ** ***** **** *** found **** ** ********** ********** ****** and ********, *** *** *** ***** alert ** *******, ******, ******* ** other ****** ***** **** ********* **** video ********* *******.
*******, *** **** ** ****, ****** 5-6x **** ** ******** *******, *** the ***** ** ****** *******.
Patent *******
******* ***** ***** ** ******* *** Quanergy's ****** **** ** ********** ******** in * ****** *******. ** ******** 2022, *** *.*. ***** ** ******* for *** ***** ******* ****** *** patentability ** *** ****** ** ********'* patent, **. *,***,***. ******** *** ******* challenged *** ******, ******** "**** ********** LIDAR ******."
*** ****** ******* ** * "*****-***** 3D ***** ***** ********* ****** **** for ********, ********** *********, *********** **************, autonomous ********, ******** ****** ********** ******* (ADAS) *** ***** ************,"********* ** ********.
******** ******* * ********** **** ******** and ***** **** *** ******* $*.** million, ********* ************ ******** *********.
******* **** *** ********** *** "* significant ****** ************ ** *** **** of ******** **** ********* ********** ** the ******'* *********** ********* *** **** process."
*** **********, ***** *** **** ****** to ****** *** * *********** *** management, *** ******** **** ********, ********* more ********* ** *** ****** **** respect ** ******* ** *** ******'* intellectual ********. *** ****** ** ******* that * ************ ********* ******* **** yield **** ******** ** * ****** of **** **********.
Russian ********
******** ** ** *** ********* ** Perkins' ***********, ******* ******** ******** ** Quanergy's ******* ******* *** **** ******* is *** ************ ** ******* ******** Alisher *******, *** ************* ** *** *.*.***** ******'* ******** ** ******* ** February ****.
* ***. *, ********* ************ ***** ******* *********** ****. ***** that ** ******* ****** * ****** of *********, "** ***** **** * material ******* ****** ** *** ******* to ****** ********* ** *** *.*. debt *** ****** *******."
** ******* ****, *** **** ****** Journal **** ********* *******'* ********** ** Quanergy *** ***** *********** ******* ********* **** **** **** to ******** ** **** ****** **** Western ********* ******* *********.
Plan *** * ****
***** ******* ** **** * ***** or ********* ****** ******* ******* **, Quanergy ** *** ******* ** ******* itself *** ******* *** ********** ******* as ******* ** ********.
*** ******* "******** **** * ****** marketing *** **** ******* ** ******* 11 **** ******** ******* ******** ** potential **********, ********* ***** ********** ** purchasing ********** ******, ** ******** ** a ***** ******* ****, ***** ** value-maximizing *** *** ******* ** ********, including ********* *********," ******* **** ** his ***********. *** ******* ********* *** about $* ******* ** ****, *** without ******* *********, "*** ******'* ********* is *********** *** **** **** ****** funding * **** ******* ** ** expedited ******** **** ****** *** * sale ******* ** ***** ********."
***** **** ****** *** ********** ******** on ***. **, ****,******** ************* *** *** ***** ******* ***** retire ** *** *** ** *** month, *** ******** ** ***** ** non-executive ******** ** *** *****. ********** would ** *********** ** *******.
**** * ********!
***** **** ******** ** *** ********** security ****** *** **** **** * mistake, *** ***** *********. ** **** were **** ** ***** ** ** longer ****** ** ***** *********** ** well ** *** ******* ******.
********** ******** **** **** **** * better ****** **** ********** ********. ****** Tesla ** ********** ********* ** ******* only, ***** ** ***** **** * think ** *** ****** ** ****** camera ******* ******* **** *****'* ****, snow, ** ****.
*** ******* *******:***** ******** ******** ** ***** ****, Find ****** — *** ***********
** ******** ******** **** ***** ***** a ****** ** ***** ***** ********* facing ************.
********'* *** **** ** *** ****. Up ***** * *** **** *** it *** ***** ******, **** *** even ****** **** ** ***** ******* 11 ****** ** ***** **** *******.
** **** **** *******, ** **** in *** ******** ******** *****? * see ***** ************ ** *** ************* field **** *** ****** *******.
*******: ***** *** *********** *** ********* that *** ******** ******** ****** ***'* their **** ****?
*.*. ***** *** ******** ******* **********, but ***** *** **** ***?