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    Home » Tech Company Backed by Bill Gates Files for Chapter 11 Bankruptcy
    Technology

    Tech Company Backed by Bill Gates Files for Chapter 11 Bankruptcy

    By Georgia McKoyMay 9, 20243 Mins Read
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    Bill Gates speaking passionately at a conference, dressed in a blue suit and tie, with a digital blue and red background
    Source: Getty Images
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    Ambri, a company on the cutting edge of developing liquid metal batteries with backing from Bill Gates, has hit a financial snag and filed for bankruptcy. 

    The company cites a tough time raising funds and disputes with a landlord and contractor as the culprits, issues that surfaced when expansion plans were scrapped.

    Bondholders Step Up to the Plate

    Source: Ambri_Inc/X

    The Wall Street Journal reports that as Ambri navigates these challenging financial times, a group of bondholders led by Gates has stepped in to spearhead the sale process. 

    They’re putting forward $38 million of secured debt in their bid, which is still open to higher offers and awaits court approval.

    Courtroom Drama Unfolds

    Source: Ambri

    The fate of Ambri’s financial restructuring is now in the hands of the U.S. Bankruptcy Court in Wilmington, Delaware. 

    Having filed for Chapter 11, the company reveals it’s wrestling with debts over $50 million, with any sale hinged on the emergence of superior bids.

    Birth of a Battery Vision

    Source: Wikimedia Commons

    Ambri’s journey began about 14 years ago in an MIT lab, where Professor Donald Sadoway’s work on liquid metal batteries caught the eye of Bill Gates. 

    Envisioned as a greener alternative to traditional batteries, this idea soon sparked a bigger vision.

    Turning Science into Start-Up

    Source: BillGates/X

    A visit to MIT in 2009 convinced Gates to fund Professor Sadoway’s vision. 

    The next year, with Gates’ initial financial support, Ambri was born—originally named Liquid Metal Battery—as Sadoway and David Bradwell embarked on transforming the battery technology landscape.

    A Surge of Financial Support

    Source: Mackenzie Marco/Unsplash

    From 2021 to 2023, Ambri attracted roughly $150 million to bring their battery technology to market and start up a production facility. 

    This influx of funds, with contributions from Gates and others, marked a pivotal phase in Ambri’s journey.

    Big Plans Hit a Snag

    Source: Ambri/Facebook

    Ambri’s ambitions to open a major manufacturing facility in Milford, Massachusetts, saw them pouring $18 million into the project. 

    The goal was to scale up their innovative technology, but financial hurdles soon put a damper on these plans.

    Construction Comes to a Halt

    Source: Shivendu Shukla/Unsplash

    Despite the financial infusion and big dreams, Ambri struggled to finish their manufacturing facility, reflecting the broader challenges faced by many emerging companies in renewable energy. 

    Ambri’s CFO, Nora Murphy, highlighted these industry-wide funding struggles in a sworn declaration.

    Legal Troubles Surface

    Source: Sora Shimazaki/Pexels

    2023 brought more than just financial strain.

    Ambri found itself entangled in lawsuits for breach of contract by both their landlord and the general contractor, adding layers of complexity to an already tough situation.

    A Strategic Retreat

    Source: Todd Wilson/MIT

    In response to its escalating financial and legal woes, Ambri has shifted its focus from manufacturing to prioritizing research and licensing. 

    This move is part of a broader strategy to navigate through bankruptcy effectively and limit further losses.

    Financial Lifelines

    Source: Fortistar/X

    To help steer through these turbulent times, Ambri has secured an additional $9.5 million from its existing bondholders, including Gates and the sustainability-focused investment firm Fortistar. 

    This financial boost is essential for keeping their operations afloat and continuing their research endeavors.

    The Stakeholders’ Stance

    Source: Wikimedia Commons

    In the midst of bankruptcy, Gates remains a major player through his venture firm, Gates Frontier, owning 37% of Ambri. 

    Other key investors include Paulson with 21% and Indian powerhouse Reliance Industries with 17%. Despite recent layoffs reducing staff numbers to 61, Ambri’s journey is far from over.

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    Georgia McKoy

    Georgia is an experienced writer from London, England. With a passion for all things politics, current affairs and business, she is an expert at crafting engaging and informative content for those seeking to expand their knowledge of the current marketplace. Outside of work, Georgia is an avid tennis player, a regular attendee of live music shows, and enjoys exploring London’s diverse culinary scene, always on the hunt for a new restaurant to try!

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