Electric-Car Maker Coda Files for Bankruptcy to Seek Sale
By Michael Bathon & Kit Chellel
May 1, 2013 3:07 PM PT
Coda Holdings Inc., parent of the electric-car maker backed by billionaire Philip Falcone, filed for bankruptcy and will seek to sell its assets to a group led by a Fortress Investment Group LLC (FIG) unit for $25 million.
The Los Angeles-based company, whose Coda Automotive unit also sought court protection, listed assets of as much as $50 million and debt of as much as $100 million today in the Chapter 11 filing in Wilmington, Delaware. The company said it intends to sell its assets within 45 days.
While A123 and an Ener1 unit received U.S. government funds, Coda didn’t. The company applied for a $334 million loan in May 2010 and withdrew the request in April 2012.
Coda was forced to seek bankruptcy protection because of production delays, insufficient capital to market and sell its sedan, and slow growth for the electric-vehicle market, which it blames on the scarcity of charging stations, according to a declaration by Chief Restructuring Officer John P. Madden.
A “Green Technology” company that didn’t receive Federal $$?! How’d that happen? Did Coda’s application land on the desk of a lazy goldbrick? Did the Federal agency figure out they were not viable? Did Coda not contribute enough to the “right” politician? Did Coda lose the pols’ and bureaucrats’ winners-picking coin flip?
How long before this Enviro-Chimaera rises again from its ashes? 5 years? 10 years? 20 years? And when it does, how much taxpayer $$ will again get wasted on it?