ZAP Files Chapter 11 Bankruptcy

March 04, 2002 by Jeff Shepard

ZAP (Sebastopol, CA) announced that in a form filed with the US Securities and Exchange Commission, the company has filed for Chapter 11 voluntary bankruptcy protection in federal court in Northern California. The company said it expects to continue filling orders and honoring warranties during the bankruptcy restructuring.

ZAP blamed both falling orders and the high costs of patent protection and development for the filing, and said it is pursuing two acquisitions that "if consummated should provide growth and profits for the company."