Proterra Receives Court Approval for Sale of Proterra Powered Business Line
- Proterra has received final approval for the sale of its business lines, indicating progress in its Chapter 11 process.
- The company looks forward to working with Volvo, Phoenix, and CSI to close the pending transactions in the coming weeks.
- The sale of the Proterra Energy business line is being consummated through a Chapter 11 Plan of Reorganization upon exit from bankruptcy, indicating financial challenges for the company.
Proterra Transit Business Line Hearing Date Scheduled for December 12, 2023
BURLINGAME, Calif., Nov. 29, 2023 (GLOBE NEWSWIRE) -- Proterra Inc (OTC: PTRAQ) (“Proterra” or the “Company”), a leading innovator in commercial vehicle electrification technology, today announced that the Company has received final approval from the U.S. Bankruptcy Court for the sale of the Company’s Proterra Powered business line to Volvo Battery Solutions LLC (“Volvo”). Proterra Powered leverages the Company’s industry-leading battery technology and expertise to electrify commercial vehicles. The transaction close date is expected to occur in Q1 of 2024.
The Sale hearing for Phoenix Motor, Inc.’s (“Phoenix”) pending acquisition of the Proterra Transit business line has been moved to December 12, 2023. Proterra Transit is a leading manufacturer of zero-emission, electric transit vehicles serving the North American public transportation market.
The sale of the Proterra Energy business line to a group of private funds controlled by Cowen Equity (“CSI”) will be consummated through a Chapter 11 Plan of Reorganization upon exit from bankruptcy. Proterra Energy provides fleet operators with a comprehensive set of EV charging solutions to scale zero-emission commercial vehicle fleets, including the Valence fleet and energy management tool.
“We are pleased to have reached this important milestone in our Chapter 11 process, and look forward to working with Volvo, Phoenix and CSI to close our pending transactions in the coming weeks,” said Gareth Joyce, Proterra CEO.
Each transaction is subject to final regulatory approvals and closing conditions.
Additional Information
All court filings regarding the Chapter 11 sales process, as well as additional information about Proterra’s Chapter 11 proceedings are available at https://www.kccllc.net/proterra or by calling call 888-251-3076 for U.S./Canadian calls or 310-751-2617 for international calls.
Moelis & Company LLC is acting as the Company’s investment banker, FTI Consulting is acting as the Company’s financial advisor, and Paul Weiss, Rifkind, Wharton & Garrison LLP is acting as the Company’s legal advisor.
About Proterra
Proterra is a leader in the design and manufacture of zero-emission electric transit vehicles and EV technology solutions for commercial applications. With industry-leading durability and energy efficiency based on rigorous U.S. independent testing, Proterra products are proudly designed, engineered, and manufactured in America, with offices in Silicon Valley and South Carolina. For more information, please visit www.proterra.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, including risks and uncertainties relating to the Company’s Chapter 11 cases. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including risks and uncertainties set forth in the sections entitled “Risk Factors” in the Company’s Annual Report for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2023, as amended on May 1, 2023, the Company’s quarterly report for the three and nine months ended September 30, 2023, filed on November 6, 2023 or the Company’s other filings with the SEC. The forward-looking statements included in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations.
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