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Phoenix Motorcars files for Chapter 11

post #1 of 4
5/2/09 at 2:36pm
Thread Starter 

Phoenix, maker of the electric SUT has filed for Chapter 11 bankruptcy in order to keep the lights on - literally.

 

Quote:

Phoenix requested the emergency hearing related to a section of bankruptcy code (Section 366) dealing with utility service. The hearing is meant to do two things: deem the utilities “adequately assured” of Phoenix’s future performance, and set up procedures for working out “requests for additional assurance” (e.g., payment) — basically making sure the utility has reason to think it will be paid, eventually, so that it will continue service.

 

A statement from Phoenix:

 

Quote:

This email is written in response to questions we have received from Autoblog Green relating to our recent restructuring.
Phoenix MC, Inc. is going through a restructure of which we plan to be very straight forward and short in nature. We have secured DIP financing and have a clear path in front of us.
We have not abandoned the alternative fuels transportation space.
We will have no further comments.
Sincerely,
Daniel J. Elliott
Chairman & CEO
Phoenix MC, Inc.

Pretty disappointing.  I hate seeing EV startups struggling like this, from Vectrix to Phoenix to Tesla.  I hope they can recover.

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post #2 of 4
5/4/09 at 10:02am

Oofff...what a bummer.  The Phoenix SUV/SUT was really looking like a viable option for a lot of car owners, in terms of its size, getting 100 miles per charge, and a top speed of 95 MPH. 

 

Of course, their website doesn't mention anything about filing for bankruptcy.  I suppose they want to appear as "business as usual" as they can...they still say they're taking orders for the SUT and SUVs which would be available in 2010.

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post #3 of 4
5/8/09 at 3:01pm

As one who has been anxiously awaiting news that the Phoenix SUT would be available this year I surprised they have filed for this special bankruptcy provision.  But they say they are still remaining in business. Hope remains that the vehicles will be available soon.

 

You would think the Obama administration would want to help these "green" companies get vehicles on the road, but we don't want the government to control them as it appears they will control GM.  I've determined not to buy any new vehicles from the Big Three and maybe no more used ones.

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post #4 of 4
5/12/09 at 9:55am

 

Quote:
Originally Posted by Kingsman42sc View Post

As one who has been anxiously awaiting news that the Phoenix SUT would be available this year I surprised they have filed for this special bankruptcy provision.  But they say they are still remaining in business. Hope remains that the vehicles will be available soon.


Agrees!  It would be a real shame for the cars and the technology to fade away.  I read this on Earth 2 Tech:

 

Quote:

So things aren’t looking too good at Phoenix. On the company’s web site, the most recent update is from December 2008 — an announcement that the company planned to launch all-electric vehicles and EV infrastructure for the fleet market in Maui by 2009. That now appears unlikely.

Last month, the startup’s investor and onetime battery supplier, Altair Nanotechnologies, noted in a release about its 2008 financial results that the Phoenix common stock on its books, valued at $106,000 as of December 31, 2007, had been written down to $18,000 “due to an impairment that management believes is other than temporary.”

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