With Fisker teetering on the brink, another American electric car maker will be closing operations with CODA EV announcing today its plans to file for Chapter 11 bankruptcy protection.
Filed today in the District of Delaware, CODA Holdings, Inc. has announced it plans to cease its automotive operations to instead refocus its business efforts on energy storage solutions.
FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group will provide financing to allow the company to remain operational during the restructuring. CODA will also seek to liquidate the remaining assets of its automotive division.
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“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, Chief Executive Officer, 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.”
Since its launch CODA has sold just 100 of its electric vehicles, which boast a 125 mile emissions-free range and initially cost $38,145.