PHOENIX, Aug. 20, 2020 /PRNewswire/ -- Advanced Green Innovations, LLC and its subsidiaries ZHRO Power, LLC and ZHRO Solutions, LLC ("AGI/ZHRO") emerged from restructuring proceedings as Proteum Energy, LLC, the developer of leading-edge patented technology in the oil and gas industry to produce low cost hydrogen, pipeline quality methane, and designer fuels from flare and residual gases.
AGI/ZHRO commenced voluntary restructuring proceedings shortly after its former CEO Kenneth Losch was indicted on federal criminal fraud charges in March 2019, which are pending in U.S. District Court in Arizona. The plan of reorganization, which was confirmed on July 22, 2020 in the U.S. Bankruptcy Court for the District of Arizona, terminates all of Losch's ownership and control of the company, removing him from all business and management activities.
The consensual plan of reorganization was overwhelmingly approved by more than 97 percent of the company's creditors as well as the Official Committee of Unsecured Creditors. The plan converts more than $205 million in creditor claims to equity in the restructured company, Proteum Energy, LLC. Despite the complexity of the bankruptcy, the plan of reorganization was approved just ten months after the voluntary petition was filed in mid-September 2019. A committee of ad hoc investors formed a Debtor in Possession lending facility, which allowed exiting AGI/ZHRO creditors to provide AGI/ZHRO funding to reorganize and continue product development during its bankruptcy proceeding.
Proteum Energy, LLC emerges as a leading micro-refining technology and fuels company to "green" the oil and gas industry by producing hydrogen and designer fuels from "flare" and residual gas through its modular flare-to-fuel (FTF) Platform. The company intends to produce a significant volume of commercial/transportation-grade hydrogen from strategic midstream locations across the U.S. and North America, creating a distributed blue hydrogen and low carbon footprint set of products and services. Produced CO2 will be sequestered through carbon capture underground sequestration (CCUS) and enhanced oil recovery (EOR).
The restructured company will be led by a nine-member board, which includes Michael Brown (chairman/CEO, Euronet Worldwide), Perry Fraley (former Kaiser Aerospace executive), John Horton (chair, PCI Gases), Peter Lacey (chairman, Cervus Equipment Corporation), Thomas Niccoli (manager, CH4 Power, LLC), Brian Day O'Connor (president, O'Connor Commercial), Robert Saik (former CEO of DOT Technology Corp), Kirk Scherr (president, Clearview Strategy Group), Larry Tree (president, Laron Incorporated). Proteum Energy plans to complement the board by adding S. Curtis Johnson (chairman, Diversity Inc.) as a tenth board member. Interim President, Terry Kennon, will continue with the company as Interim CEO and chief technology officer.
"We are excited to move to the next phase of the company's development as Proteum Energy, and we are gratified by the overwhelming support of the company's creditors", remarked Thomas Niccoli, chairman of the board and chief operating officer. Board member John Horton agreed, "We look forward to realizing the full potential of Proteum Energy as we move forward with a deleveraged balance sheet, poised for growth."
For additional information, please contact Thomas Niccoli, Chairman email: [email protected] or phone: (602) 999-7749
Proteum Energy, LLC is a Chandler, Ariz.-based, green-technology company providing a suite of patented micro-refining technologies capable of producing blue hydrogen and designer fuels for power and compression, from flare and residual gas. Proteum Energy has a stated goal of providing industry friendly and compatible services designed to "green" the oil and gas industry, lowering the overall carbon footprint of produced fuels and related emissions.
SOURCE Proteum Energy, LLC