As Coda Automotive goes through bankruptcy proceedings, related companies are not escaping the turmoil. Both Lio Energy Systems Holdings and Miles Electric Vehicles asked this week to have their bankruptcy cases jointed administered with Coda's, since they're all tied together.
Miles Automotive is the electric vehicle company that came before Coda. The producer of small, low-speed EVs, Miles announced it was working on a highway-speed EV called the XS500 years before it evolved into the Coda Sedan.
The way all these companies are connected is somewhat convoluted. We know that Miles Rubin was the force behind Miles Automotive, which he started in 2004. Later, in 2009, he co-founded and was for a while chairman of Coda. Reuters says that Lio Energy Systems is a direct subsidiary of Coda Holdings (it was a joint venture with China's Lishen Power Battery). Miles Electric Vehicles is now a direct subsidiary of Lio. Got it? Good, because you can shortly forget it when all these companies go through the bankruptcy grinder in the coming weeks.
At that time, you might need to learn a new name, Fortress Investment Group. Fortress is trying to buy Coda's assets for just $25 million. By the looks of things, this deal will go through.