This year has not been a good one for green technologies, numerous solar companies have filed for bankruptcy protection and now Valence which produces batteries for electric vehicles will join the fray.
Valence, based in Austin, Texas, filed for Chapter 11 debt protection in order to boost the company’s liquidity, which will allow it continue producing their lithium phosphate batteries.
This year Valence sold $44.4 million in batteries and accessories which are used in hybrid and electric vehicles, yachts, mopeds and forklifts. The bankruptcy filing listed $82.6 million in liabilities and $31.5 million in assets.
If a judge approves of their bankruptcy plan, the company will continue to pay employee wages and benefits and will continue customer programs. Subsidiaries outside the U.S. will not be affected by their bankruptcy filing.
Valence expects to emerge from Chapter 11 by the end of this year.
When faced with financial difficulties, businesses and individuals may see no alternative to bankruptcy. This is a decision people take into careful consideration, after consulting with a bankruptcy attorney, and see it as a chance to once again become solvent.
Individuals, who are over their heads in debt, have different debt-relief structures to choose from. Once you get in touch with a bankruptcy lawyer they will be able to determine if you should file for Chapter 7, Chapter 11, or Chapter 13.
Each bankruptcy structure has its benefits and pitfalls, but has the end goal of protecting you from the collection activities of creditors and returning you back on sound financial footing. A bankruptcy attorney will be there to answer all your questions and guide you through the entire process.