Proterra, a manufacturer of electric buses as well as battery charging systems, has voluntarily filed for Chapter 11 bankruptcy stating that it is taking action to maximize the value of its business and enhance the potential of each of its product lines.
The news comes on the heels of Lordstown Motors' announcement that it had filed for bankruptcy and had filed litigation against global technology company Hon Hai Technology Group and certain of its affiliates.
In a Monday statement, the company, which introduced zero-emission, electric transit buses to the North American market in 2010, explained that it aims to strengthen its financial position through a recapitalization or going-concern sale by filing for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
The company added that 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.
According to Gareth Joyce, Proterra CEO, the company has faced market and macroeconomic headwinds, which have impacted Proterra's ability to efficiently scale all of its opportunities simultaneously. Joyce stated that the company is looking forward to sharpening its focus as a supplier of EV battery technology.
“Proterra is at the forefront of the innovations that are driving commercial vehicle electrification. We know we’re building industry-leading products that our customers want and need,” Joyce said. “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.”
After the U.S. Bankruptcy Court filing in Delaware, Proterra canceled its second-quarter earnings call planned for Wednesday.