ECOtality May Need to File Bankruptcy
Posted on January 27th, 2014
Those who own businesses in the state of Arizona may be interested in learning about why ECOtality, an electric car-charging company, may be closing its doors for good. In a recent filing, the company disclosed various problems with the SEC and stated that it was exploring options for restructuring or selling the entire business and/or its assets. It also may need to file a petition to begin a business bankruptcy case in the near future.
ECOtality was extremely involved in the EV Project, which is a federal program sponsored by the Department of Energy. The objective of that program was to install electric vehicle infrastructure and charging stations throughout the United States. According to ECOtality, the company installed more than 13,000 charging units for commercial and home use. The EV Project paid nearly $100 million to the company in reimbursements for the installations. According to the filing, the company stated that the DOE stopped making its payments. In addition, it claimed that the charging stations were no longer profitable.
The report indicated that ECOtality had issues regarding finding more funding. The company was also required to remit $855,000 in damages and back wages in order to settle claims from the U.S. Department of Labor that it violated the Davis-Bacon Act and Fair Labor Standards Act. The company was originally located in Arizona before relocating to San Francisco.
When small businesses struggle, their owners often believe as if bankruptcy is their only option. An attorney in Arizona experienced in these matters may be able to help by evaluating the business to determine if it is worth saving. Such an attorney may be able to suggest several options, which may include bankruptcy, reorganization of debt, and other forms of debt relief .