NEW YORK, NY--(Marketwired - May 28, 2013) - Better Place, Inc. lost a stunning $459 million in 2012, while bringing in only $6.9 million in Sales -- the now bankrupt clean energy startup's private Financial Statements released today by private company research firm PrivCo reveal.
Better Place is an electric vehicle charging station start-up that had raised over $900 Million in investor funding, and has now collapsed into forced liquidation in an Israeli District Court. Exclusive Better Place Inc. financial statements released by PrivCo disclose for the first time the extent of Better Place Inc.'s stunning losses, against its meager sales of just $6.9 million in 2012 while losing the shocking sum of $459 million to achieve those sales: http://www.privco.com/better-place-forced-into-liquidation-after-cash-runs-out
Better Place Inc. recently raised funding at a valuation of $2.25 billion (the startup's peak valuation) in November 2011.
PrivCo CEO and Corporate Lawyer Sam Hamadeh, Esq. said today in a statement: "The sheer size of Better Place's more than $900 million in losses -- and the inchoate, near non-existent nature of its underlying business, with $6.9 Million in Sales in 2012 and $0 in 2011 -- shock one's conscience."
Better Place Inc.'s 2012 & 2011 Financial Statements released exclusively by PrivCo, the financial data provider on privately held companies:
ISRAELI BANKRUPTCY LAWS VERY PRO-CREDITOR, BUT FEW ASSETS LEFT v. $915 MILLION OF LIABILITIES
"The Israeli insolvency process is based on the Companies Ordinance 5743-1983, the Companies Regulations 5477-1987, and the Bankruptcy Ordinance of 1980," said PrivCo CEO and corporate attorney Sam Hamadeh, Esq., an expert on corporate restructurings. "Because Better Place has little chance for a 'Reorganization' under Israeli bankruptcy law (similar to a company Chapter 11 reorganization in the U.S.), it was forced into Liquidation in the Lod District Court in Israel on Sunday, a process initiated by a major shareholder. Under Israeli corporate bankruptcy law, the State Receiver -- who represents the Government -- acts as the official custodian of Better Place's assets. The State Receiver also appoints a temporary liquidator, the final decision of which PrivCo expects shortly."
LITTLE CHANCE OF A REORGANIZATION FOR BETTER PLACE: NO "DEBTOR-IN-POSSESSION" FINANCING UNDER ISRAELI LAW
Hamadeh explains: "Unlike U.S. Bankruptcy Law, under Israeli bankruptcy law there is no automatic seniority for lenders to the distressed company while it attempts to operate while in bankruptcy, known as 'debtor-in-possession' financing (which in the U.S. has first claims over pre-bankruptcy lenders). As a result, a reorganization similar to a U.S. Chapter 11 process is nearly impossible. So Better Place has no access to capital and will likely be forced to liquidate."
Under Sunday's Israeli Liquidation Petition, Better Place listed assets of $9.5M, supplier liabilities of $40M, and cumulative losses of $812M. PrivCo infographic of the Israeli corporate bankruptcy process:
To view privately-held BETTER PLACE INC.'s Income Statements and Balance Sheets released by PrivCo:
PrivCo is the leading provider of private company financial data and independent research on over 210,000 private companies and 80,000 private company deals, including private company mergers & acquisitions, private equity, venture capitals, LBOs, and IPOs.
Topics: Better Place Inc., CleanTech, Electric Vehicles, Startups, Venture Capital, Bankruptcy, Israeli Bankruptcy