Electric carmaker Think Global AS, who launched its North American operations in Elkhart, Indiana, filed for bankruptcy on June 22, 2011. The company filed in its home country of Norway.
Think North America unit is not affected by the bankruptcy. It will remain a separate legal entity with offices in suburban Detroit and the plant in Indiana. The bankruptcy trustee will determine the future of the North American operations.
Think Global’s exclusive battery supplier Ener1 released a statement that Think Global plans to liquidate its assets. Ener1 filed notice with the U.S. Securities and Exchange commission that it expected its customer to liquidate.
The filing states Think is liquidating after an “extended and ultimately unsuccessful search for long-term financing.”
Ener1 notified investors that the company is taking a charge of over $32 million on unpaid loans and accounts receivables from Think Global. The company does not anticipate much of a recovery from the liquidation.
Think’s only model, the City, had modest successes in California and Europe. However, an unknown price tag and competition from the Chevy Volt and Nissan Leaf made selling the cars a difficult task. Not even a government contract to supply electric vehicles could keep Think Global AS from filing for bankruptcy.
Benjamin Brand Services – Chicago bankruptcy attorney