Volta Trucks’ administrators are in advanced negotiations with Luxor Capital Group, which made a substantial investment in the company, to acquire it in a deal that could save hundreds of British jobs.
A deal is nearing completion for one of the largest creditors of Volta Trucks, an electric vehicle startup that declared bankruptcy last month, to acquire the company from its administrators.
Luxor Capital Group Emerges as Probable Purchaser
Volta’s administrators and Luxor Capital Group, a former lender and shareholder in the company, are currently engaged in advanced negotiations. These negotiations concern a transaction that has the potential to safeguard hundreds of British jobs.
On Thursday, automotive industry sources reported that Luxor had emerged as the most probable purchaser of the United Kingdom-based company.
One industry executive suggested that an accord might be achieved in the forthcoming days; however, they cautioned that the schedule is still subject to change.
Volta Trucks hired administrators to its UK operation days after declaring insolvency in Sweden, company headquarters.
While the exact number is unknown, 600 of its 850 employees worked in the UK. While the percentage remains uncertain, a significant portion of the employment in the United Kingdom is anticipated to be preserved.
Recent Developments and Challenges
Recently, Volta Trucks established a service centre in north London. It was testing its Volta Zero all-electric vehicle in the UK and Europe.
With a 200-kilometer range, the emission-free truck can carry numerous times in a major city or town.
The financing round in which the company secured €230 million in February of last year included Luxor Capital, a credit hedge fund based in the United States.
The identity of its additional creditors is presumed to comprise B-FLEXION.
On Thursday, Alvarez & Marsal, the firm responsible for the administration of Volta Trucks, declined to provide any comment.
Challenges Faced by Volta Trucks
As it prepared to appoint administrators last month, the startup stated: “We received tremendous feedback during our pilot programmes in five European countries, which generated a robust pipeline of esteemed clients interested in integrating our Volta Zero Trucks into their fleets.
“However, similar to any start-up in the electric vehicle manufacturing industry, Volta Trucks has encountered obstacles throughout its journey.
“The manufacturing plans have been significantly impacted by the recent news that our battery supplier [Proterra] has initiated Chapter 11 bankruptcy proceedings. As a result, the anticipated volume of vehicles produced has been drastically reduced.”
The lack of clarity surrounding our battery supplier hindered our capacity to secure adequate funding. This occurred during an already arduous period for electric vehicle companies to raise capital.