Ener1 Inc., the ambitious New York-based maker of lithium-ion batteries for electric vehicles and energy storage, has filed for bankruptcy despite receiving $118 million in grants from the U.S. Department of Energy — and lavish-support from the Republican-controlled state of Indiana, home to one of the company’s principal factories.
The “pre-packaged” bankruptcy was filed after the company reached agreement with its primary investors and lenders on a restructuring plan “that will significantly reduce its debt and provide up to $81 million to recapitalize the company,” Ener1 officials said in a statement released after the filing.
Though Ener1 expects to continue operating and still hopes to eventually profit as battery car demand grows its bankruptcy filing could turn into a political football with both Democrats and Republicans pointing fingers.
The company’s statement said Ener1 expected to maintain its current employment level of approximately 700 and eventually repay creditors. It has 275 employees in Indiana.