The Dream of Better Place Comes to its End

26 May, 2013

Better Place has filed today a motion with the Lod District Court, Israel, to ask for the dissolution of the company and the appointment of a temporary liquidator

Better Place has filed today a motion with the Lod District Court, Israel, to ask for the dissolution of the company and the appointment of a temporary liquidator

Renault Fluence Z.E. during switch process in Better Place Battery Switch Station
Renault Fluence Z.E. during switch process in Better Place Battery Switch Station

The Board of Israel Corporation, Israel’s largest holding company, decided today (Sunday) to withdraw it participation in the next fund raising round of the electric vehicle company Better Place.

Israel Corporation is the largest stake holder in Better Place with 33% of its shares. In a brief report to the Tel-Aviv stock exchange, the company stated that there are no other potential investors for this round, “therefore, Better Place will soon submit legal application to liquidate the company.”

Soon after, Better Place announces that it has filed a motion with the Lod District Court today to ask for the dissolution of the company and the appointment of a temporary liquidator. In its motion the company stated that in light of its failure to raise additional funds and in the absence of sufficient resources for the continued operation of the business, the company is asking for the court’s assistance in protecting the rights of its employees, customers and creditors.

Electrifying dream

This is the end for a dream to revolutionize transportation infrastructures. Since its inception in 2007, Better Place has raised more than $850 million. Among its investors: VantagePoint Venture Partners, Israel Corporation, HSBC, Morgan Stanley, Esarbee Investments Canada and more.

The company had huge expectations: In 2009 it signed an agreement with Renault to produce an electric version of its Renault Fluence Z.E. family car. Better Place estimated than that it would sell no less than 115,000 cars during 2011-2016. But reality was different: today only approximately 1,500 vehicles are in use, mainly in Israel and Denmark.

The company’s Board of Directors said: “This is a very sad day for all of us. We stand by the original vision as formulated by Shai Agassi of creating a green alternative. Unfortunately, the path to realizing that vision was difficult. The technical challenges we overcame successfully, but the other obstacles we were not able to overcome, despite the massive effort and resources that were deployed to that end.”

Better Place Chief Executive Officer, Dan Cohen, said: “This is a difficult day for all of us. From the start, Better Place was a breakthrough for the infrastructure of the electric car industry and successfully completed the development of its technology and infrastructure. Israel was the first place in which an electrical car could travel without limit.

“Today, in the light of our obligation to our staff, customers and creditors, we are applying to the court for the appointment of a temporary liquidator. The management is requesting the voluntary liquidator once appointed to decide as quickly as possible to award compensation to customers and staff and maintain the functioning of the network.”

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Posted in: Business , Energy & Environment , News

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