Proterra has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in the District of Delaware in an effort to strengthen its financial position through a recapitalization or going-concern sale. As a result of the filing, Proterra cancelled its scheduled earnings conference call on Wednesday.
Proterra said it 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 in accordance with Chapter 11 rules, all while ensuring business continuity for customers.
While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously. As commercial vehicles accelerate towards electrification, we look forward to sharpening our focus as a leading EV battery technology supplier for the benefit of our many stakeholders.—Gareth Joyce, Proterra CEO
Proterra introduced electric transit buses to the North American market in 2010. Those buses have cumulatively amassed more than 40 million real-world service miles and displaced more ethan 180 million pounds of CO2 emissions. The company’s battery technology is 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 US, European, and Asia-Pacific markets. The company has also installed more than 100 megawatts of heavy-duty EV charging infrastructure to support commercial vehicle fleets across North America.
Moelis & Company LLC is acting as the Company’s investment banker, FTI Consulting as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor.