On August 7, Proterra announced that it filed for a voluntary Chapter 11 reorganization. According to a release from Proterra, the filing is intended to “maximize the value of the business and product line potential.”
The Company will continue to operate as an electric vehicle technology provider.
The move comes weeks after Lordstown Motors filed for bankruptcy protection and put itself up for sale after failing to resolve a dispute over a promised investment from Foxconn.
According to a report from Reuters, Proterra, whose shares nearly halved in value after the bell, listed its assets and liabilities in the range of $500 million to $1 billion. The Company had a market value of $362 million as of the last close.
In January 2021, Proterra was valued at $1.6 billion, including debt, in a merger deal with a blank-check firm.
Proterra intends to continue to operate in the ordinary course of business as it moves through this process and plans to file the customary motions with the Bankruptcy Court to use existing capital to fund operations, including paying employee salaries and benefits and compensating vendors and suppliers on a go-forward basis following Chapter 11 rules, all while ensuring business continuity for customers.
“Proterra is at the forefront of innovations driving commercial vehicle electrification. We know we’re building industry-leading products that our customers want and need,” said Gareth Joyce, Proterra CEO. “The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation. This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
What About Commercial Trucks?
Proterra has stated it intends to continue operations as it proceeds through the bankruptcy process. It will continue to focus on EV battery production.
The Company introduced zero-emission, electric transit buses to the North American market in 2010, which have now cumulatively amassed more than 40 million real-world service miles and displaced over 180 million pounds of CO2 emissions.
Proterra battery technology is also powering more than 20 commercial vehicle applications spanning Class 3 cargo vans through to Class 8 semi-trucks, as well as off-highway equipment in the construction and mining segments in the U.S., European, and Asia-Pacific markets. The Company has installed more than 100 megawatts of heavy-duty EV charging infrastructure to support commercial vehicle fleets across North America.
Quotes from the CEO give the feeling of a shift toward a stronger focus on being an EV battery technology supplier.
Work Truck will continue to update our readers as we hear more about the filing and how it will impact fleets operating Proterra vehicles today.