Carbon Motors Files for Bankruptcy
With assets of just $18,976 and liabilities of $21.7 million, Carbon Motors had to file for bankruptcy after the US Department of Energy rejected the company's request for a $310 million loan last year.
“The entire business model was premised on that entire loan coming through,” Henry Efroymson, a partner at Ice Miller LLP said, according to the Indianapolis Business Journal. “It was a huge, unexpected disappointment for management as well as the investors,” he added.
Morningstar Inc. CEO Joe Mansueto, German automaker BMW and Inteva Products LLC are among the companies that claim more that $6.6 millions from Carbon Motors.
Founded in 2003, Carbon Motors Corporation announced in 2009 that it would move into the vacant Visteon plant in Connersville to develop and build high-tech police cars. Only one prototype of the Carbon E7 was built so far.