An electric car company has filed for Chapter 11 bankruptcy protection in Wilmington.
California-based CODA Holdings, Inc. announced that it is focusing its business strategy on the growing energy storage market.
The process is intended to enable the company to go forward with a sale. The company expects the sale process to take 45 days to complete.
CODA built electric cars based on a body imported from China, according to published reports. The company did not receive any federal loans.
Fisker Automotive has largely shut down operations after a federal loan was suspended. Fisker planned to use proceeds from the loan to build a mid-sized hybrid automobile in Delaware
FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, is leading a consortium of lenders intending to provide debtor-in-possession financing to enable the company’s energy storage business to remain in operation during the restructuring process.
“After concluding a comprehensive review of our strategic options, the board of directors, management team and senior lending group have concluded that focusing on the company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, CEO, CODA Holdings, Inc. “We believe the restructuring process that we have entered into today will enable the company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”
