Wednesday, May 1, 2013
CODA Files For Bankruptcy, Abandons Automobile Business
Los Angeles-based CODA Holdings, the parent firm of hybrid electric automotive maker CODA Automotive, is abandoning the automotive business, and has filed for Chapter 11 bankruptcy. CODA Holdings said this morning that it will restructure its business around its energy storage technology, the segment of its business which has been taking the battery management and thermal management systems it developed in creating its cars and applying it to energy storage for the commercial, residential, and industrial market.
The bankruptcy filing is no surprise to those who have been following the saga of CODA Automotive. The firm has been battling its vendors in court over failure to pay its bills.
CODA said that it is receiving debtor-in-possession (DIP) financing from a consortium of lenders, led by FCO MA CODA Holdings LLC, an affiliate of Fortress Investment Group, and that it is looking to sell its existing automotive business assets. CODA said it is being advised in the restructuring by White & Case LLP, Emerald Capital Adivsors, and Houlihan Lokey. Fortress is being advised by Sidley Austin LLP.