Alevo, which has long promised its revolutionary lithium-ion battery technology would revolutionize utility-scale energy storage, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court in the Middle District of North Carolina on Friday and laid off its 290 employees.
The company reported in its filing that it had between $10 million and $50 million in debts owed to 50 or more creditors. The number is balanced against somewhere between $1 million and $10 million in assets. Alevo’s website says it plans to liquidate all of its assets to pay off its creditors.
“Despite demonstrating the advantages of its groundbreaking battery technology, Alevo Manufacturing has had significant production challenges and thus insufficient revenue to continue operations,” a statement on the company’s website said. “The Alevo entities have actively sought new funding sources to finance their operations and growth strategies. Unfortunately, despite best efforts, the funding has not been realized in time to permit continued operations.”
According to its bankruptcy filings, its factory needs immediate attention because its factory “requires the utilities to detect and handle potentially hazardous gases and materials.”
“The chapter 11 filings are a very difficult, but necessary decision”, said Peter Heintzelman, chief financial officer of the Alevo entities, in a statement on the company’s website. “This decision was driven by the formidable challenges of bringing a new technology into commercial production and lacking the financial wherewithal to continue on through repeated manufacturing delays. It is a sad day for our dedicated employees and partners, as well as for the promise of Alevo’s technology.”
Sad indeed, though likely slightly more sad for the 290 workers who are losing their jobs than it is for Heintzelman. But those workers may have recourse.