As Tesla’s network of NACS connectors and Superchargers gains momentum, Stellantis and General Motors’ joint venture, led by a seasoned executive from both companies, has filed for bankruptcy.
The corporation announced its intention to execute a restructuring strategy, enabling it to transfer control of the business to senior creditor Environment Traders, as outlined in. The corporation has appointed long-time Ford and GM executive Mark LaNeve as the president of its government affairs group.
Stellantis, having adopted Tesla’s North American Charging Standard (NACS), collaborated with Cost Enterprises last year to install electric vehicle chargers at its over 2,600 dealerships across the United States. The corporation also installed charging stations for Volvo, Chevrolet, and General Motors.
Cost Enterprises revealed that it initiated a survey of collectors regarding its restrictive strategy at the start of this week, as scheduled. The corporation boasts an ebook value exceeding $114 million, juxtaposed against liabilities totalling around $48.7 million.
Headquartered primarily in New York, the corporation provided comprehensive project management services across electrical, broadband, and electric vehicle charging industries, reporting quarterly revenues of $132.3 million for the latest period, down from $185.9 million in Q3 of the prior year.
According to Cost Enterprises, the primary reason for this is due to its association with funding advisor Korr Acquisitions Group Inc. and its former Chairman, Kenneth Orr. The corporation responded to allegations by stating it was due to access a sum of approximately $10 million held by Korr Acquisitions; however, when the corporation sought to release those funds, they were “unexpectedly and unjustifiably unavailable.” A subsequent investigation revealed that the funds had been redirected to other entities affiliated with Orr.
Cost Enterprises subsequently filed a lawsuit against Korr and its former chairman; nonetheless, Korr and Orr contend that the case lacks merit since Cost Enterprises possessed unrestricted access to account statements and the agency was authorized to utilize funds to cross-collateralize accounts.
Several electric vehicle (EV) companies have filed for Chapter 11 bankruptcy protection alongside Lordstown Motors Corp., a prominent EV manufacturer. As the electric vehicle industry faces challenges, Proterra, an EV elements maker, and ONE Electric Final Mile Solutions Inc., a subsequent power company, join LG Energy Solution’s recent downsizing, which affected 170 employees.
