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Electric Car Maker Files for Bankruptcy Protection –

LOS ANGELES — A green car start-up, Coda Holdings, filed for bankruptcy protection Wednesday after selling just 100 of its all-electric sedans.

The filing with the U.S. Bankruptcy Court in Delaware will allow the Los Angeles company to get out of the auto sector and refocus on energy storage, a far less capital-intensive business. The company uses the same technology it used in cars to build systems for utilities and building operators to store power.

A group of lenders led by Fortress Investment Group 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 introduced its five-passenger electric car in California a year ago, delivering a range of 125 miles, or 200 kilometers, on a single charge.

The $37,250 vehicle was criticized for its no-frills styling, and its short history also included a recall because of faulty airbags.

Consumers have been slow to gravitate toward electric vehicles as a result of their high cost, and fears about their driving range.

Just three years ago, Coda was one of an emerging crop of California start-ups, including Fisker Automotive and Tesla Motors, seeking to build emission-free electric cars to appeal to mass-market consumers.



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