ECOtality Inc (NASDAQ:ECTY), manufacturer of electric vehicle-charging systems, mulls over options including a sale
Denver, CO, 08/14/2013 (Avauncer.com) – Ecotality Inc (NADAQ:ECTY), which manufactures charging methods for e-vehicles, stated that it could be forced into a sale or bankruptcy lodging “in the coming time” after unsatisfying sale facts and postponement of payments from the federal administration.
The San Francisco-based firm stated that it appointed a restructuring consultant in order to assess options comprising novel financing or a possible sale. The company made the remarks in a statement with the Securities and Exchange Commission. The scrip of the company dropped down by around $1.17, or 80%, to 29 cents during afternoon trading. The company formulates charging and power-storage structures for e-vehicles below the Blink and Minit Charger brands. It also does screening for administrative agencies, car manufacturers as well as utilities.
The company listed several setbacks in recent months, comprising its incapability to market enough commercial electric vehicle equipment with the aim to continue operations during the second half of 2013.
ECOtality scrip declined 79.11%
Ecotality’s declaration that it may confront bankruptcy as it fails to enhance sale facts caused its scrip to shed around 84%. It is likely that the company will shortly incorporate in the lengthy list of US substitute energy firms, which have dropped by the wayside.
The company’s shares suffered a decline of 79.11 per cent and ended the day at $0.305 per share. After opening at $0.26, the company’s scrip hit an intraday low of $0.24 and intraday high of $1.01 per share. The scrip of the company had witnessed 52 week low of $0.24 and 52 week high of $2.40 per share respectively.
ECOtality may hunt for bankruptcy protection
ECOtality declared that, although the firm is presently exploring alternatives for a restructuring or sale of the whole business and/or assets of the firm, it may require lodging a petition starting a case under the US Bankruptcy Code as part of any such procedure or otherwise in the coming time.