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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. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

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