Israeli company goes bankrupt

May 26, 2013 at 8:21 AM

LOD, Israel, May 26 (UPI) -- The Israeli electric car company Better Place announced Sunday that it has filed for bankruptcy.

The company asked the Lod District Court to appoint a temporary liquidator,The Jerusalem Post said.

"This is a difficult day for all of us," Chief Executive Officer Dab Cohen said. "Unfortunately, after a year's commercial operation, it was clear to us that despite many satisfied customers, the wider public take up would not be sufficient and that the support from the car producers was not forthcoming."

The Israeli company created an electric car network building an electric and battery infrastructure in Israel. Last year the board ousted founder Shai Agassi, but was plagued by financial losses and stopped its global activities and focused on trying to make a success in Israel, the newspaper said.

"Despite significant efforts over that time frame, revenues are still insufficient to cover operating costs, and in the light of the continued negative cash flow position, the board has decided that it has no option but to seek to make this application to the courts for an orderly liquidation of the company," a company statement said.

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