Bankruptcy Pleading of the Day: Declaration of President & CEO in Support of Valence Technology’s Chapter 11 Filing

Valence Technology, Inc., a developer and manufacturer of proprietary phosphate-based lithium ion batteries, voluntarily filed for bankruptcy protection on Thursday in Texas.  The publicly-traded company, headquartered in Austin, Texas, filed a declaration of Robert Kanode explaining the reasons for Valence’s bankruptcy filing and what it hopes to achieve through the case.   In short, the company has a $3 million loan maturing at the end of this month and faced a liquidity crisis.  According to the declaration, which is embedded below, the company’s “cash and cash equivalents were insufficient to fund its operating and capital needs.”  Additionally, the company’s revenue for fiscal year 2013 “would be insufficient to cover its operating expenses.”

In addition to the declaration embedded below, please see the following additional posts on this website providing more information regarding this case:

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