On May 1, 2013, Coda Holdings, Inc. and its affiliated debtors (the "Debtors") commenced chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. A copy of the Coda Holdings, Inc. chapter 11 petition may be found here. In support of the first day filings, Debtors offered the Declaration of John P. Madden. A copy of Mr. Madden's Declaration is found here. Mr. Madden is the Debtors' Chief Restructuring Officer.
According to Mr. Madden's Declaration, Debtors design, develop, and sell all-electric vehicles ("EVs"), electric drive propulsion systems, and stationary energy storage systems. Debtors' proprietary battery management system provides valuable energy storage, supply, protection and flexibility to users in a wide range of stationary and EV applications. Debtors cite difficulties in brings its CODA Sedan to the market, combined with the muted response to the vehicle once final production began that resulted in substantially greater expenses and lower revenues than anticipated as possible causes for the bankruptcy.
Debtors contend that they have been attempting to sell their assets since the fall of 2012 without success. On April 30, 2013, Debtors entered into a Restructuring Support Agreement with its supporting lenders that proposes a public auction designed to maximize the value of Debtors' assets and permit the orderly winding up of Debtors' affairs following a sale through a confirmed liquidation plan of reorganization. As set forth in the Madden Declaration, a group of lenders plans to extend debtor-in-possession financing and will serve as the stalking horse bidder in connection with a section 363 sale of the Debtors' assets, and to support a plan of reorganization that will provide for some value to the estate.
Debtors moved for joint administration of their chapter 11 cases for procedural purposes only. Debtors propose to appoint Kurtzman Carson Consultants LLC as claims and noticing agent. These motions and other first day motions are scheduled to be heard on May 3, 2013 at 10:00 am. The Coda Holdings, Inc. bankruptcy case has been assigned Case Number 13-11153-CSS. The cases have been assigned to Bankruptcy Judge Christopher S. Sontchi.