Green car start-up Coda Holdings, filed for bankruptcy protection this week after selling only 100 of its all-electric vehicles according to Reuters.
The filling with the federal Bankruptcy Court in Delaware allows the company to get out of the auto sector and refocus on energy storage.
The company uses the same technology it uses in vehicles to build systems for building operators and utilities to store power. Coda introduced the five-seat electric car in California a year ago, capable of delivering 125 miles on a single charge.
The $37,250 model has been criticized for its no-frills styling and was recalled for faulty air bags. It doesn't help people have been hesitant to commit to all-electric models due to their high cost and dears about their driving range.
A group of lenders led by Fortress Investment Group has indicated they want to extend debtor-in-possession financing and will seek to acquire the company for $25 million through the bankruptcy process, Coda said in a press statement.
Coda was one of the emerging California start-up companies, which also included Fisker Automotive and Tesla Motors. The companies were founded with the ambition to build emission-free electric cars to improve the environment.
The company was able to get big time investors which included Aeris Capital, former Treasury Secretary Henry Paulson and the Limited Brands chief executive Les Wexner.
In 2012 the company withdrew its request for a $334 million in federal loans, similar to the ones Tesla and Fisker obtained.
Shortly after, Coda had a hard time to get new private funding according to Reuters. Coda tried to raise $150 million but was only able to get $22 million.
Fisker has also considered a bankruptcy-filling, and their lithium-ion battery maker, A123, filed towards the end of 2012.
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