US bankruptcy court approves asset sale plan of Coda Automotive

Article by Anita Panait, on June 13, 2013

The United States Bankruptcy Court for the District of Delaware has approved a plan by electric carmaker Coda Automotive to sell its assets for $25 million to a group of lenders led by Fortress Investment Group. The transaction entails payments of $1.7 million in cash, while the rest will be paid through a "credit bid," in which Fortress will bid for Coda’s assets using debt owed instead of cash.

In its bankruptcy petition filed on May 1, 2013, Coda said it is exiting the car business to concentrate on the development and sale of energy storage systems through subsidiary Coda Energy. In a statement, Coda said the court’s approval of the sale will allow it to emerge in a stronger position to develop its core technology, forge stronger relationships with partners, and allow it to execute its business plan in the “growing energy-storage sector."

Two Coda affiliates --  Lio Energy Systems Holdings and Miles Electric Vehicles – recently filed for chapter 11 bankruptcy protection and are seeking to have their cases jointly administered with those of Coda Holdings and its affiliates, including Coda Automotive.

The case is in re Coda Holdings Inc., Case No. 13-11153, U.S. Bankruptcy Court, District of Delaware. Coda sought bankruptcy protection after selling only 100 of its electric sedans. Coda rolled out its five-passenger electric car in California in 2012, with a range of 125 miles on a single charge. The $37,250 (EUR27,972) electric vehicle received criticisms for its no-frills styling. [source: Bloomberg]

Topics: bankruptcy

If you liked the article, share on:

Comments

Recommended

As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries