DJ Ecotality Files for Chapter 11 Bankruptcy Protection
(Dow Jones 09.17 13:09:35)
By Marie Beaudette
Ecotality Inc. (ECTY), a maker of electric vehicle charging stations, has
filed for Chapter 11 bankruptcy protection.
The company filed its Chapter 11 petition late Monday with the U.S.
Bankruptcy Court in Phoenix.
Ecotality last month said it was exploring strategic options, including a
restructuring or sale, citing a range of problems, including payment
suspensions from the U.S. Department of Energy.
The company provides clean electric transportation and storage technology
services that are used in on-road and grid-connected vehicles, material
handling and airport electric ground support applications. The firm also
makes specialty solar products and advanced battery systems.
In August, when disclosing it was reviewing its options, Ecotality pointed
to its failure to attain sufficient sales volumes of its commercial Electric
Vehicle Service Equipment to support its operations in the second half of
the year.
It also said it was unable to release a scheduled new product offering in
its Minit Charger industrial line, which is critical to its growth.
Ecotality said the Minit Charger 12 product exhibited unacceptable
performance shortfalls during prototype verification testing and won't be
introduced in 2013.
Ecotality also said it has been unable to obtain additional financing and
has been notified by the Department of Energy that the agency is suspending
payments to the company in connection with the EV Project, which Ecotality
described as being "the largest deployment of electric vehicle charge
infrastructure in history."
The company owes the Energy Department $6.5 million, according to court
papers.
-Saabira Chaudhuri contributed to this article.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies
and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Marie Beaudette at marie.beaudette@wsj.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 17, 2013 07:09 ET (11:09 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.
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