Another Green Bankruptcy: $115 Million Go Up In Smoke
Taxpayer-backed green energy company ECOtality filed for chapter 11 bankruptcy protection on Monday. The company was awarded $115 million in stimulus funds.
The news followed weeks of turmoil in which the company laid off employees and ceased filling orders for its electric vehicle charging stations.
The Energy Department, which awarded the company about $115 million in stimulus funds to produce those chargers, suspended payments last month.
The company announced the bankruptcy in a Monday filing with the Securities and Exchange Commission. It also said that Brandon Hurlbut, the company’s director, resigned on Sunday.
The bankruptcy proceedings will take place in the United States Bankruptcy Court for the District of Arizona, the company said.
“It is likely that the Company’s common stock will have very little or no value given the amount of the Company’s liabilities compared to its assets,” the filing noted.