Capstone Green Energy Corp. Files for Bankruptcy to Rework Debts

Capstone Green Energy Corp., a maker of small gas turbines for power generation, filed for Chapter 11 bankruptcy protection with a plan to slash its debts and take some of its business private.

The Los Angeles-based company reached a pre-packaged restructuring deal with Goldman Sachs Specialty Lending Group and Broad Street Credit Holdings that would reorganize the company into public and closely held units, according to a statement. Capstone’s distributor support services would become a private company, while its Capstone Turbine International Inc. unit will be renamed Capstone Green Energy Corp. and be publicly traded.

Existing shareholders will ...