News / Business
Ener1 makers of electric car batteries declares bankruptcy
Ener1 Inc. a company that makes batteries for electric cars and a recipient of a Department of Energy grant has filed for Chapter 11 bankruptcy protection, according to Bloomberg.
Ener1 Inc. is the third alternative energy company to declare bankruptcy in the past several months. Solyndra and Beacon Power Corp. declared bankruptcy last year. Ener1 and Solyndra, also recipients of federal funds, both attributed their financial troubles to competition from China, which can produce these goods at a much lower cost. Labor and material costs are much lower for Chinese manufacturers.
Ener1 listed its assets at $73.9 million with debts totaling $90.5 million, according to Bloomberg.
A restructuring plan has been introduced and approved and will allow the company to emerge from bankruptcy in 45 days. The company said that all unsecured creditors will be paid in full under the reorganization plan.
Ener1 was recently under investigation by the federal safety officials after a battery in a Chevy Volt caught fire. They lithium-ion batteries have since been deemed safe.
Unlike Solyndra, which went under, Ener1 will continue operations during reorganization.
A bankruptcy attorney may suggest Chapter 11 reorganization if the business can reach an agreement with creditors.
Bankruptcy is a hard decision for a business or individual, but a bankruptcy lawyer can help through this troubling time. The debt protection each company chooses can be determined by their bankruptcy attorney after they analyze the financial records.
Ener1 Inc. is the third alternative energy company to declare bankruptcy in the past several months. Solyndra and Beacon Power Corp. declared bankruptcy last year. Ener1 and Solyndra, also recipients of federal funds, both attributed their financial troubles to competition from China, which can produce these goods at a much lower cost. Labor and material costs are much lower for Chinese manufacturers.
Ener1 listed its assets at $73.9 million with debts totaling $90.5 million, according to Bloomberg.
A restructuring plan has been introduced and approved and will allow the company to emerge from bankruptcy in 45 days. The company said that all unsecured creditors will be paid in full under the reorganization plan.
Ener1 was recently under investigation by the federal safety officials after a battery in a Chevy Volt caught fire. They lithium-ion batteries have since been deemed safe.
Unlike Solyndra, which went under, Ener1 will continue operations during reorganization.
A bankruptcy attorney may suggest Chapter 11 reorganization if the business can reach an agreement with creditors.
Bankruptcy is a hard decision for a business or individual, but a bankruptcy lawyer can help through this troubling time. The debt protection each company chooses can be determined by their bankruptcy attorney after they analyze the financial records.
