Ecotality's rough patch continues, bankruptcy an option
By Andy Giegerich
Digital Managing Editor
The electric vehicle charger maker Ecotality is considering bankruptcy as it attempts to recover from a rough first two-thirds of 2013.
A financial filing by the Ecotality charging system company suggests the company could soon be sold or forced into bankruptcy.
The company (NASDAQ: ECTY), which makes charging systems for electric vehicles, revealed Monday it could need to make the moves “in the very near future” amid disappointing sales and suspension of payments from the federal government that had helped the company during its so-far lean 2013.
Ecotality also acknowledged it will not introduce its Minit Charger industrial line, which was set to roll out this year. The charger “exhibited unacceptable performance shortfalls during prototype verification testing,” Ecotality conceded in its Monday filing.
What’s more, the company will face an investigation from a shareholder and consumer rights litigation firm.
Company officials told SBO earlier this year that it had consolidated its Portland sales force but that the Blink charging station-maker was “committed to expanding upon the already rich infrastructure we have helped build in the state.”
Ecotality had received more than $90 milliion in funding through the recently ended federal stimulus program.
AP reported that the San Francisco-based company hired a restructuring adviser to evaluate options including new financing or a possible sale.
Its stock plunged $1.15, or 79.8 percent, to 31 cents in Monday’s trading.
Zeldes Haeggquist & Eck LLP, a San Diego-based shareholder and consumer rights litigation firm, is looking into whether the company’s leaders “violated the federal securities laws or breached their fiduciary duties owed to the Company and its shareholders.”
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.