ECOtality files for Chapter 11

|By:, SA News Editor

Electric car-charging company ECOtality (ECTY) has filed for bankruptcy protection, sending its shares plummeting 28.4%.

Nissan (NSANY.OB) has agreed to provide a term loan of up to $1.25M at interest of 5% a year.

ECOtality plans to use the money to operate until its assets have been sold in a bankruptcy auction.

The Chapter 11 filing comes after ECOtality defaulted on a 2015 convertible loan.

The bankruptcy is likely to stoke controversy given that ECOtality has received $96M of a $115M stimulus grant. (8-K)