ECOtality files for Chapter 11

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)

From other sites
Comments (4)
  • Truth_Investor
    , contributor
    Comments (374) | Send Message
 Nissan moving in to buy Ecotality? If so how will that effect common stock?
    17 Sep 2013, 11:43 AM Reply Like
  • tpage
    , contributor
    Comment (1) | Send Message
    I think Nissan has a strong interest in Ecotality's future. The Nissan Leaf has a large dependence on the car makers success if there are no commercial charging stations available. If you can't charge it you cannot drive it and Ecotality has the most charging stations available in California.
    17 Sep 2013, 09:52 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13380) | Send Message
    If you read the 8K just released, it specifically says the loans are so that ECTY can find a buyer, or liquidate, or, the DOE reinstitutes the award money.


    The only reason Nissan is loaning ECTY money is so they do not have an interruption in service, since they really on ECTY to install their EV chargers.


    I have an initial analysis on my blog titled "Let's Trade ECTY!"
    17 Sep 2013, 10:56 PM Reply Like
  • ldb0380
    , contributor
    Comment (1) | Send Message
    How do I find your blog
    23 Sep 2013, 10:57 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs