EV Company Coda Files for Chapter 11 Bankruptcy Protection
Coda Holdings has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The company is exiting the automotive marketplace and plans to restructure to focus on the energy storage business. The company said it expects the bankruptcy process to take 45 days to complete.
"After concluding a comprehensive review of our strategic options, the Board of Directors, management team and senior lending group have concluded that focusing on the Company’s energy storage business presents the best opportunity moving forward,” said Phil Murtaugh, chief executive officer, Coda Holdings, Inc. “We believe the restructuring process that we have entered into today will enable the Company to complete a sale and confirm a Plan that maximizes the value of its assets, serving the best interests of our stakeholders.”
Coda stated it is already building and selling custom energy storage solutions based on its vehicle battery and thermal management systems. The company said its customers include commercial, residential, and industrial users.
FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, said it will provide debtor-in-possession financing so the company can remain operational throughout the restructuring process.