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Electric Car Company Files for Bankruptcy

Advancements in technology can be seen just about everywhere, including in the cars that we drive. One of the breakthroughs in recent years is the electric car and technology regarding it has been sought due to benefits such as a reduced demand for oil and less impact on the environment. Many companies and inventors have taken action to make this idea a reality and electric cars have continued to make their way onto the roads. While the culture has made a great effort to go green, not all electric car companies are finding it easy to make it in the market. With many longstanding automobile companies existing, the new guy faces an uphill battle.

One company recently found the struggle to make it in the market too much and filed for Chapter 11 Bankruptcy after only 100 of their sedans had been purchased. The five passenger car was launched in California for $37,250 offering up to 125 miles from a charge. There was a recall on the airbags and the car received poor reviews for its aesthetics. After the financial difficulty it faced, Coda Holdings Inc. decided to back out of the market and focus its efforts on energy storage. It is expected at this point that the company will be acquired by lenders for around $25 million as the bankruptcy case continues. They are not the first electric car company to experience financial difficulty and many consumers are hesitant to turn to this option based on the high price tag and limited driving range. Under Chapter 11 bankruptcy businesses are given the chance to reorganize. This is best to do with an attorney to avoid costly mistakes and to take advantage of the filing. Contact an Irvine bankruptcy lawyer from the firm to find out if bankruptcy is right for you.