The management of failed Israeli electric car company Better Place announced Wednesday that it would appeal to court for the cancellation of a bid to acquire the company, after the Sunrise purchasing group failed to meet its financial obligations and transfer payments by the agreed-upon date.
The company also demanded that Sunrise return assets sold as part of the deal, a move which would allow Better Place to seize bank and financial guarantees for the sum of NIS 1.8 million ($500,000).
“This is a violation of a judicial decision of the court and a fundamental violation of the sales agreement,” a company statement said.
Better Place further requested that the court issue an order prohibiting the purchasers from executing any disposition with regard to corporate assets which were transferred as part of the agreement.
Sunrise, also known as the Association for the Promotion of the Electric Car, comprises solar power entrepreneur Yosef Abramowitz and fellow investor Harry Shiner, representing a group of Better Place car owners. It was to acquire the bankrupt company from the liquidators for some NIS 18 million (less than $5 million).
The car owners’ association’s overall aim was to have Better Place declared a national infrastructure project that would eventually become a technology and service platform for all electric vehicles in the country.
Better Place burned through more than $800 million in five years, and sold barely 2,000 of its electric cars, which was why Abramowitz was able to buy the company for a mere fraction of its actual worth.
A source involved in the transaction told Channel 2 that he believes the tender for the acquisition of Better Place will not be re-opened following the cancellation of the deal, but will instead be granted to one of the other potential purchasers who originally submitted a bid.
Jessica Steinberg contributed to this report.