US electric car maker Coda files for bankruptcy

02 May 2013

1

US electric car maker Coda Automotive yesterday filed for bankruptcy, making it the third electric car-related company to seek Chapter 11 protection in a year.

Filing for bankruptcy in a Delaware court, the Los Angeles-based electric car start-up listed assets worth $50 million and debts of around $100 million.

Coda is the latest casualty in the US electric vehicle-related market as the battery for the green vehicle has failed to live up to expectations, high cost of the car, and lack of recharging stations that are required on long trips.

Coda's bankruptcy comes after electric car battery makers A123 Systems and Ener1 Inc recently filed for bankruptcy, while loss-making California-based electric car maker Fisker Automotive is struggling to stay afloat.

Founded in 2009, Coda started assembling its five-passenger sedan at its plant in the Northern California town of Benicia, which had a single-charge range of up to 125 miles.

The car's battery, body and other components were made in China through its partnership with Hafei Motor Co, a state-owned automobile and aircraft manufacturer.

Although the company had planned  to sell between10,000 to 14,000 vehicles in its first 12 months, it fell far short of target and was able to sell only around 100.

Meanwhile in 2012 Coda had launched its energy storage business comprising batteries and battery management systems for grids, which it intends to keep post bankruptcy even as it will give up making electric cars completely.

A group of lenders led by Fortress Investment Group will try to acquire the company for $25 million through the bankruptcy process, Coda said in a statement. The company expects the sale process to take 45 days to complete.

Coda raised around $344 million in equity investments since its founding, according to court documents and owes around $17 million to its 30 largest unsecured creditors, while its biggest unsecured creditor is Hafei, whom it owes $2.7 million.

Institutional investors in Coda included New World Strategic Investment, Indus Capital, Och-Ziff Capital Management Group, Aeris Capital, Angeleno Group, Harbinger Capital Partners and Riverstone Holdings, while among the personal investors included Henry Paulson – a former Goldman Sachs CEO and US Secretary of the Treasury under George Bush.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more