Thursday, July 12, 2012
Valence Technology Files For Chapter 11 Bankruptcy
Austin-based energy storage products firm Valence Technology has filed for Chapter 11 bankruptcy, the firm disclosed Thursday. The company said it had filed for voluntary chapter 11 business reorganization in the U.S. Bankruptcy Court for the Western District of Texas, in an attempt to bolster liquidity for the firm, and due to a "lack of attractive alternatives". The energy storage maker did not detail the issues behind the filing. In a related move, two of its board members -- Donn Tognazzani and Bert Roberts Jr.--have resigned from the firm's board, in a disagreement over the Chapter 11 filing. The firm said the move by the two, who sat on its audit committee, further puts it into noncompliance with NASDAQ listing rules. The firm has already been in noncompliance with the exchange over its trading range, a predecessor to delisting for publicly traded companies.