CODA Electric Car Company Files For Chapter 11 Bankruptcy.
The filing with U.S. Bankruptcy Court in Delaware will allow the Los Angeles-based company to focus on its Lithium-iron phosphate (LiFePO4) battery systems operation as well as its power storage utility applications.
A group of lenders led by Fortress Investment Group LLC plan to extend debtor-in-possession financing and will seek to acquire the company for $25 million through the bankruptcy process, (http://www.codaautomotive.com/) Coda said in a statement.
CODA's first car, an all-electric four-door, five passenger battery electric vehicle (BEV) dubbed the CODA sedan, sold for $37,250 and delivered a range of 125 miles on a single charge. The first deliveries of the vehicle to retail customers in the United States took place in March 2012. Since then, the CODA sedan has been recalled one time for a faulty airbag issue.
Founded in 2009, CODA raised $300 million in equity from backers including Aeris Capital, Limited Brands Chief Executive Les Wexner, and former U.S. Treasury Secretary Henry Paulson. The company, however, in 2012 withdrew its request for $334 million in federal loans like the ones Fisker and Tesla received.
Last year, Coda sought to raise $150 million but clinched just $22 million, according to a filing with the (http://www.sec.gov/) U.S. Securities and Exchange Commission.
While Tesla has put thousands of cars on the road, Fisker is reportedly considering a bankruptcy filing. Fisker's lithium-ion battery maker, (http://www.cbsnews.com/8301-34227_162-57533597/electric-battery-maker-a123-systems-goes-bankrupt/) A123 Systems Inc., filed for bankruptcy late last year.
Coda has about 40 active employees and expects to recall 50 furloughed workers. Emerald Capital Advisors is advising Coda on its restructuring, and Houlihan Lokey is its investment banker.
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|Publication:||International Business Times - US ed.|
|Date:||May 1, 2013|
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