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© dr911-dreamstime.com Electronics Production | May 27, 2013

Better Place goes bankrupt

Electric car technology company Better Place files for bankruptcy in Israel and Denmark.

The company have been trying to build up electric car ”gas stations” where the idea was to change battery instead of charging. The concept failed to attract enough interest. Better Place announces that it has filed a motion with the Lod District Court for the dissolution of the company and the appointment of a temporary liquidator. In its motion the company stated that in light of its failure to raise additional funds and in the absence of sufficient resources for the continued operation of the business, the company is asking for the court’s assistance in protecting the rights of its employees, customers and creditors.

Over the past six months, Better Place’s management has made fundamental changes in the company, focused its strategy, goals and markets and at the same time has continued to seek additional financing for the business and secure additional models to supplement its current offer.

Despite significant efforts over that time frame, revenues are still insufficient to cover operating costs, and in the light of the continued negative cash flow position, the Board has decided that it has no option but to seek to make this application to the Courts for an orderly liquidation of the company.

Better Place Chief Executive Officer, Dan Cohen, said: “This is a difficult day for all of us. We have come a long way in order to bring about a global vision. From the start, Better Place was a breakthrough for the infrastructure of the electric car industry and successfully completed the development of its technology and infrastructure. Israel was the first place in which an electrical car could travel without limit.

Unfortunately, after a year’s commercial operation, it was clear to us that despite many satisfied customers, the wider public take up would not be sufficient and that the support from the car producers was not forthcoming.
Against that background, the most recent fundraising round was not successful. In recent months, the management of the company did all that it could to keep the business operating. Today, in the light of our obligation to our staff, customers and creditors, we are applying to the court for the appointment of a temporary liquidator.

The management is requesting the voluntary liquidator once appointed to decide as quickly as possible to award compensation to customers and staff and maintain the functioning of the network”.

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