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E-car charging company melting down

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Doug_G

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Apr 2, 2010
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http://www.azcentral.com/business/c...ging-company-melting-down.html?nclick_check=1

Ecotality, the former Arizona electric-car charging company that moved to San Francisco after being awarded $115 million in federal stimulus help, is near collapse.
The company disclosed an array of problems, including defects that cause some of its chargers to melt, in a regulatory filing last month.

It said the Department of Energy stopped making payments to the company. The stimulus funds were part of a program called the EV Project.

The company also disclosed it agreed to pay $855,000 in back wages and damages to settle Labor Department claims it violated the Fair Labor Standards Act and Davis-Bacon Act. The company had an additional $89,000 in payroll taxes due because of the payments.

The company also said that some of the electric-car chargers it has installed are overheating and melting the connection to the vehicles. The regulatory filing said it is unclear how much the issue will cost, and it may be forced to replace 12,000 of the chargers installed.

It also can’t find financing to supplement its cash flow, meaning it might not meet its current financial obligations, it said.

In the regulatory filing, which preceded at least six law firms announcing they are suing or examining claims against the company, Ecotality officials said they are “exploring options for a restructuring or sale of the entire business and/or assets,” but may need to file bankruptcy “in the very near future.”