Report: Think filed for bankruptcy

Article by Christian A., on June 22, 2011

Think Global AS made many attempts to keep itself afloat through recapitalization and restructuring but it failed and so it succumbed last Wednesday and filed for bankruptcy in Norway where it is based.

This is the fourth financial collapse that the electric car maker has had in the 20 years that it has existed. In an Automotive News Europe interview, Think spokesman James Andrews said that it required more funding and even if it had some interested investors, nothing could be done fast enough.

Sources say that to continue to operate, Think would need multiple millions. Andrews said that the options available to Think include liquidating assets or selling the company to a new investor.

Production in Europe had ended last March of Think’s sole model, the City minicar. So that the inventory will be rebalanced, Think had also stopped the production at the factory in Uusikaupunki, Finland, owned by contract manufacturer and Think investor Valmet Automotive.

Last year, Think was only able to sell 1,043 units of the City. Andrews said that a court-appointed trustee from Thommessen, the Oslo-based commercial law firm, had taken control of the company last Wednesday.

This trustee is tasked to manage Think’s assets such as wholly owned U.S. subsidiary Think North America, which runs an EV production plant in Elkhart, Indiana. Even if Think North America is a separate entity, it gets financial support from the Norway headquarters, making its future quite uncertain.

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Topics: bankruptcy

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