EV charger maker ECOtality said it may need to file for bankruptcy after failing to increase sales.
ECOtality previously won a $99.9 million loan guarantee through the American Recovery and Reinvestment Act of 2009. The U.S. Department of Energy (DOE), which approved the funding, notified ECOtality it is suspending payments to the company’s EV Project, which is an effort to roll out electric vehicle charging stations.
ECOtality, which operates under three businesses – Blink, Minit Charger and eTec Labs – said it is working on restructuring the business for a potential sale, but bankruptcy filing is also an option.
“Although the company is currently exploring options for a restructuring or sale of the entire business and/or assets of the company, the company may need to file a petition commencing a case under the United States Bankruptcy Code as part of any such process or otherwise in the very near future,” ECOtality said in its SEC filing.
Monday’s announcement also said that the company’s Minit Charger product, meant to go on sale this year, “exhibited unacceptable performance shortfalls during prototype verification testing,” and thus won’t be introduced in 2013.
Its stock plunged 79.8 percent, to 31 cents, in trading Monday.
