ECOtality plan sponsor Blink says committee fraud claims ‘fall short’

By Kali Hays

New York, Feb. 2 – ECOtality North America’s plan sponsor Blink UYA, LLC is looking to strike a motion of the official committee of unsecured creditors asking that the order confirming ECOtality’s plan of reorganization be vacated, according to a Friday motion with the U.S. Bankruptcy Court for the District of Arizona.

As previously reported, ECOtality’s committee claims that that Blink, Car Charging Group Inc. and their affiliates and representatives took part in a fraudulent issue of company stock and asked that the Dec. 31 confirmation order be set aside allowing the committee to move forward with an alternative plan.

Blink said that not only is the committee required to file an adversary complaint against it to seek revocation of a confirmation order, but that its “arguments and accusations fall short of the heightened pleading standard for fraud” under Bankruptcy Code.

The plan sponsor said it is aware of “the substantive predicament facing the court” but that “resolving the present situation by way of the wrong procedure is highly likely to yield the wrong result,” according to the motion.

Blink went on to say that the committee’s motion “is an inappropriate procedural device that seeks an inappropriate remedy” and that it “simply must be stricken.”

ECOtality, a renewable energy company based in San Francisco, filed for bankruptcy on Sept. 16, 2013. The Chapter 11 case number is 13-16126.

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