Electric bus and truck maker Proterra says it is seeking Chapter 11 bankruptcy protection from a federal court in Delaware.
The Burlingame, California, company is a big supplier of buses to transit systems and holds a $20-million contract with BC Transit.
“In a Chapter 11 bankruptcy protection, Proterra has stated they will continue to operate business as usual as they proceed through the process. We will continue to monitor the situation which includes keeping close contact with Proterra as they navigate through their proceedings and assess how it will impact our current orders,” BC Transit said in a statement to Black Press Media.
A statement on Proterra’s website Monday (Aug. 7) said it intends to maintain normal operations and will file motions with the court to use existing capital to keep funding operations, including paying employees, vendors and suppliers.
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The company said in the statement that it’s taking action to separate its business units “to maximize their independent potential.” It sells heavy truck, van, bus and off-highway equipment in the U.S., European and Asia-Pacific markets.
“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,” CEO Gareth Joyce said in the statement. “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.”
Shares in Proterra Inc. closed Tuesday down more than 88 per cent at 17 cents.
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BC Transit remains under contract for 10 battery electric buses slated to arrive in Victoria this fall.
BC Transit said the contract allows the agency the option of purchasing more heavy-duty electric buses, charging equipment and supporting services in the future.
“BC Transit will be evaluating the status of any work with Proterra to assess potential exposure and risk factors. BC Transit has an existing non-exclusive agreement with Proterra to support future bus purchases. This agreement is flexible and allows BC Transit the option to purchase buses from other manufacturers,” the statement reads.
– with files from Christine van Reeuwyk