After selling just 100 all-electric sedans, Coda Holdings Inc. filed for Chapter 11 reorganization last week.
The filing will allow the Los Angeles company to leave the auto business and focus on energy-storage operations. Coda uses the same technology it employed in its cars to store power to build systems for utilities and building operators.
The Coda sedan was assembled in California from powertrains and partly assembled vehicles shipped from China by its joint-venture partner, Hafei Motor Co.
Under CEO Phil Murtaugh, former chief of General Motors' China unit, Coda launched its five-passenger sedan a year ago. The vehicle had a sticker of $37,250 and delivered about 125 miles of driving on a charge.
A group of lenders led by Fortress Investment Group LLC plans to extend debtor-in-possession financing and will seek to acquire the company for $25 million through the bankruptcy process, Coda said in a statement.
Coda, which has four U.S. dealers, raised $300 million from backers that included Aeris Capital, Limited Brands CEO Les Wexner and former U.S. Treasury Secretary Henry Paulson.