Stimulus-backed Ener1 files for bankruptcy

NEW YORK, Jan. 26 (UPI) -- Ener1, whose subsidiary received a stimulus grant from the U.S. Department of Energy to create batteries for electric cars, filed for bankruptcy Thursday.

"This was a difficult, but necessary, decision for our company," Ener1 Chief Executive Officer Alex Sorokin said in a news release. "We are extremely pleased to have the strong support of our primary investors and lenders to substantially reduce the company's debt."

Ener1, based in Indiana, has asked a New York bankruptcy court to approve a plan to restructure its debt and incorporate $81 million in equity funding, The Hill reported.

EnerDel, a subsidiary of Ener1, received a $118.5 million grant in 2009 as part of a broader program promoting development of batteries for electronic vehicles. The company received more than $4 million in grants from the Department of Defense during the administration of former President George W. Bush.

EnerDel said the Department of Energy grant would create 1,700 jobs, but major financial problems in recent months led to the bankruptcy filing.

The move comes amid an investigation by House Republicans into the bankruptcy of solar panel maker Solyndra, which received a $535 million Department of Energy loan guarantee in 2009.