Advanced Manufacturing and Auto Industry and Public Companies and Banking & Finance and Manufacturers and EnerDel and Manufacturing & Technology

Struggling Ener1 receives $4.5M from investor

November 23, 2011

Ener1 Inc., the struggling parent of Indianapolis-based advanced-battery maker EnerDel, has received $4.5 million in short-term financing to continue operating while the company evaluates its options to reorganize debt.
 
New York-based Ener1 said on Tuesday that it received the financing from Bzinfin S.A., Ener1’s largest shareholder, which is based in the British Virgin Islands.

“We are working to put the company on stable financial footing as we navigate current economic challenges and evolving market conditions,” said Alex Sorokin, Ener1’s interim CEO, in a prepared statement.

Sorokin was named CEO of the company earlier this month as part of a major management shakeup.

Ener1’s initial focus was making compact, lithium-ion-powered batteries for automobiles, but the company has run into deep financial trouble despite receiving more than $100 million in government energy grants and numerous other government incentives. Its stock has been removed from NASDAQ and it faces several lawsuits.

The company lost $165 million in 2010.

Ener1 leaders said they planned to have 1,400 employees working in Indianapolis-area operations before 2015, but local employment has slipped from about 380 to roughly 250 since March. EnerDel operates from a Hague Road headquarters, a facility in Noblesville and leased factory space in the Mount Comfort area of Hancock County.

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