US firm Ample enters Chapter 11 insolvency

Ample, a San Francisco-based company, aimed to become a key player in the battery-swapping sector. However, the firm has now filed for Chapter 11 insolvency in the Southern District of Texas. Despite raising a total of $330 million over its lifetime, Ample has reportedly faced liquidity issues in recent times, primarily due to ‘the challenging investment environment for renewable energy’.

Ample consistently promoted a battery-swapping system designed to enable a full vehicle charge in just five minutes. The company stated that its technology is modular, vehicle-agnostic, and allows the exchange of depleted battery packs for fully charged ones without driver intervention. Over time, Ample secured investment and collaboration partners, including Shell, Mitsubishi, and Stellantis. Initial projects were launched this year in Madrid and Tokyo. The future of Ample’s technology now largely depends on how the insolvency proceedings unfold. The fact that it is a Chapter 11 process at least offers some hope.

After all, a Chapter 11 insolvency procedure in the US focuses on restructuring. If a company is insolvent and sees no basis for successful continued operation, it is wound up under Chapter 7 rules. In contrast, Chapter 11 insolvency protects the company from creditors’ legal actions until the reorganisation is complete. For context, during the 2009 financial crisis, General Motors also underwent a Chapter 11 insolvency process.

bondoro.com via electrek.co