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Struggling Ener1 receives $4.5M from investor

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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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  • great
    Our own little version of Solyndra. The liberal Feds just can't give away the US taxpayers dollars fast enough.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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