ECOtality files for Chapter 11 bankruptcy

ECOtality, operator of the Blink charging network and manager of the EV Project, has filed for Chapter 11 bankruptcy, and intends to seek the approval of the court for an auction and sale of substantially all of its assets.

In connection with the filing, ECOtality and its subsidiaries entered into a Credit and Security Agreement with Nissan (one of ECOtality’s partner in the EV Project), under which the Japanese automaker will make available a loan of up to $1,250,000 to fund operations until the asset sale and pay administration costs necessary to maintain the corporate existence.

The DOE has already paid ECOtality about $96 million in connection with the EV Project, but suspended payments in August when the company ran into financial trouble. The feds are investigating the situation, but there’s no news on whether or how the EV Project, and its mission of assembling a database about charging behavior, will continue.

 

Source: Green Car Congress