Vicinity Motor se enfrenta al telón final

Canadian electric bus and truck maker Vicinity Motor is officially in receivership following a court order after failing to repay its loans. The entire board and most senior management have resigned, and the company is no longer listed on NASDAQ.

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Image: Vicinity Motor

Como Autonomía eléctrica Canadá writes, Vicintiy owes the Royal Bank of Canada (RBC) loans totalling over 22 million Canadian dollars (around 15 million euros). As a result, not only has a court declared the company insolvent, but the entire board of directors and several members of senior management have also resigned. Vicinity Motors was also delisted from the Nasdaq stock exchange.

The situation had come to a head in mid-October when RBC announced to Vicinity that it would be filing for bankruptcy in a few days. As the Management Board was aware of the implications, the company made this information public in an announcement and PricewaterhouseCoopers also resigned as the company’s auditor. Vicinity’s share price had already plummeted following this news.

It is unclear what the current situation means for Vicinity Motor’s customers. In its balance sheet for 2023, the company stated an order backlog of CAD 125 million – the majority of which is likely to come from a major order from 2022 for 1,000 e-trucks. It is currently unclear how many vehicles Vicinity has delivered in total, whether the vehicles ordered can still be produced and what the situation is regarding the supply of spare parts for vehicles that have already been delivered. Vicinity has not yet responded to a corresponding enquiry from Electric Autonomy Canada.

However, Vicinity’s insolvency administrator is experienced in electromobility: according to the report, he has already worked in the same capacity at Lighning eMotors and Proterra.

electricautonomy.ca

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