Battery maker EnerDel under fire over Think claims

When electric vehicle maker Think filed for bankruptcy last spring, it owed millions of dollars to EnerDel subsidiary Ener1. Ener1 was also a major investor in Think and a lot of the company's worth was tied up with the Norwegian EV maker. Any way you slice it, Think's failure put Ener1 in a bind. They were unable to collect on their debts, and their investments were suddenly worthless. Just recently, Ener1 was forced to restate their losses in 2010 from $69 million all the way up to $165 million as they factored in the departure of Think.

It follows that this was a big setback for investors in Ener1. According to many small investors in the company, it was also a big surprise. Investors have reported that Ener1 had been making positive statements about the condition of Think, leading those investors to overestimate the value of both Think and Ener1. As Ener1 was moving to restate its losses, investors were lining up to take the company to court. However, proving this type of case is often difficult and investors will have to show that Ener1 was both aware of Think's true condition and that they reported false information leading to a loss for the investors.

To complicate matters, Think has been acquired by a group headed by Russian investor Boris Zingarevich, who is also a major investor in Ener1. Zingarevich isn't exactly a newcomer on the scene, since he had a sizable stake in the company before it failed. So for the most part Think is operating under new ownership that's remarkably like the old ownership, Ener1 is still supplying the batteries, and both companies are still joined at the hip, but a lot of money has gone away.

Those TV viewers mourning the end of certain soap operas on daytime may find they can get similar enjoyment out of watching what happens next in this saga.



Source: Autoblog Green