Valence Technology withdraws motion to enter financing proposal letter

By Caroline Salls

Pittsburgh, Aug. 15 - Valence Technology, Inc. has withdrawn its motion to enter into a debtor-in-possession financing proposal letter with Wells Fargo Bank, NA, according to an Aug. 15 filing with the U.S. Bankruptcy Court for the Western District of Texas.

"In its business judgment, at this time, the debtor has decided not to proceed with the Wells Fargo motion," the company said in the filing.

As previously reported, Wells Fargo expressed interest through the proposal letter in providing $20 million of DIP financing to Valence.

A hearing on the motion had been scheduled for Aug. 16.

Austin, Texas-based Valence Technology, a developer of lithium-ion batteries, filed for bankruptcy on July 12. The Chapter 11 case number is 12-11580.

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