Electric Car Battery Company Files Bankruptcy
Thu January 26, 2012
Indiana-Based Electric Car Battery Manufacturer Files for Bankruptcy
Ener1, an Indianapolis-based company that received millions of dollars in federal stimulus funding, wants a Federal Bankruptcy Court in New York to approve a debt-restructuring plan. The company develops batteries for use in electric vehicles, but has reportedly faced major financial problems in recent months.
One of the company's subsidiaries received a 118.5 million dollar stimulus grant from the Obama Administration in 2009. The funding, which came through the Energy Department, was part of a program designed to encourage the development of technology for electric vehicles. According to The Hill, President Obama touted that program in his State of the Union address.
Company officials hope an infusion of equity funding will support continued operation and will avoid an adverse impact on employees and suppliers. When the 118 million dollar federal grant was announced, the company had predicted that 1700 jobs would be created.