Phoenix Motorcars Sputters Into Chapter 11

Chrysler isn’t the only automaker facing bankruptcy. Electric truck and SUV startup Phoenix Motorcars has filed for Chapter 11 (hat tip AutoblogGreen) and will have its day in court today — bankruptcy court, that is. The Ontario, Calif.-based company, backed by Dubai-based investor Al Yousuf, is scheduled for a hearing this afternoon in Riverside to help it keep “utility service”, or basically keep the lights on, and the water running at its offices.

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According to a schedule (PDF) from the U.S. bankruptcy court in Riverside, Phoenix requested the emergency hearing related to a section of bankruptcy code (Section 366) dealing with utility service. The hearing is meant to do two things: deem the utilities “adequately assured” of Phoenix’s future performance, and set up procedures for working out “requests for additional assurance” (e.g., payment) — basically making sure the utility has reason to think it will be paid, eventually, so that it will continue service.

So things aren’t looking too good at Phoenix. On the company’s web site, the most recent update is from December 2008 — an announcement that the company planned to launch all-electric vehicles and EV infrastructure for the fleet market in Maui by 2009. That now appears unlikely.

Last month, the startup’s investor and onetime battery supplier, Altair Nanotechnologies, noted in a release about its 2008 financial results that the Phoenix common stock on its books, valued at $106,000 as of December 31, 2007, had been written down to $18,000 “due to an impairment that management believes is other than temporary.”

Phoenix has not replied to requests for comment.

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