Lithium-ion battery maker Ener1 Inc. was granted $13.5 million in restructuring financing by a judge in Manhattan today, keeping the company’s hopes for survival alive. Ener1 filed for bankruptcy on Thursday.
The company was seeking a total of $20 million to fund its operations during restructuring, according to Bloomberg, but U.S. Bankruptcy Judge Martin Glenn ruled the company could get by with less. “You have not persuaded me you should get $20 million today when the budget you presented shows a maximum usage of $13.5 million,†Glenn said.
Although a relatively minor player in the electric vehicle industry, the Ener1 bankruptcy case is drawing attention for its similarities with the bankruptcy of solar panel producer Solyndra. Like Solyndra, Ener1 was granted money from the federal government only to wind up in bankruptcy court.
As a part of the American Reinvestment and Recovery Act of 2009, Ener1 was given a $118.5 million grant from the U.S. Department of Energy. However, the company has apparently blown through all of that cash as it listed $73.9 million in assets to $90.5 million in debt in its bankruptcy filing.
Ener1 has supplied electric vehicle batteries to Volvo and Nissan, but is closest tied to EV maker Think.
