Los Angeles Business Journal

Coda Holdings Files Chapter 11, Plans to Sell Automobile Unit

By Business Journal Staff Originally published May 1, 2013 at 9:07 a.m., updated May 1, 2013 at 9:34 a.m.

Coda Holdings Inc., parent of the Los Angeles electric-car maker Coda Automotive, filed for bankruptcy protection on Wednesday.

A group of lenders, led by Fortress Investment Group, will seek to acquire the company for $25 million through the bankruptcy process, Coda said in a statement.

Coda Holdings will try to sell off Coda Automotive within 45 days so it can focus on its energy-storage business, Chief Executive Phil Murtaugh said.

Murtaugh said the plan "maximizes the value of its assets, serving the best interests of our stakeholders.”

The bankruptcy filing in Wilmington, Del., lists Coda Automotive as having assets of as much as $50 million and debt of as much as $100 million, according to Bloomberg News and Reuters.