Friday, July 13, 2012

Valence Technology, Maker off Batteries for Electric Vehicles, Files Bankruptcy

Valence Technology Inc. (VLNC), a maker of batteries for electric vehicles, sought bankruptcy protection from creditors, saying it plans to complete its restructuring this year. The company, based in Austin, Texas, listed debt of $82.6 million and assets of $31.5 million as of March 31 in Chapter 11 documents filed today in U.S. Bankruptcy Court in its hometown. Valence owes $35 million on loans from affiliates of Chairman Carl Berg, about $34 million in interest on those loans, and $3 million on another third-party loan, according to court papers. The company also owes about $9 million on two series of convertible preferred stock held by Berg affiliates and has $11 million in trade debt and accrued expenses.

Read the rest of the article at Bloomberg

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