Menomonee Falls-based EnSync Inc. terminated “substantially all of its workforce” Monday and plans to file for receivership on Tuesday, according to a securities filing.
Online court records did not indicate the company had made the filing as of noon Tuesday. Receivership is a state process similar to bankruptcy. A lawsuit seeking a money judgment was filed Monday by 13901 Leasing Co. LLP, the owner of EnSync’s headquarters building.
EnSync has seen a tumultuous start to 2019. The company, which builds and develops renewable energy systems, saw its chief executive officer leave in late January. The company retained Novo Advisors for restructuring advice and named Sandeep Gupta, co-founder and managing partner of Novo, as interim CEO and chief restructuring officer.
The company previously said it was at risk of having to shut down after a potential energy user for one its systems briefly backed out of a project. The incident triggered problems with the sale of the project, delays in equipment shipments and stress on relationships with suppliers.
EnSync said it was in need of short-term financing and ultimately secured a $500,000 loan from a company affiliated with former chairman Paul Koeppe.
The loan is set to mature on Wednesday and appears to not be enough to keep the company in operation.
