Proterra seeks bankruptcy court approval of bid procedures

By Sarah Lizee

Olympia, Wash., Aug. 9 – Proterra Inc. is seeking approval of bid procedures for its asset sales or recapitalizations, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Through the bid procedures, the company may select one or more stalking horse bidders and pursue court-approved bid protections.

In addition to one or more asset sales, the debtors are soliciting any other type of strategic transaction involving the debtors or their assets, including proposals for raising debt or equity financing through a Chapter 11 plan of reorganization.

The debtors have three distinct business lines: Proterra Transit, Proterra Powered and Proterra Energy.

In light of the nature and timing of the Proterra Transit production cycle, which manufactures electric transit buses, and Proterra Energy’s synergies with Proterra Transit, the debtors are proposing a sale timeline that has the potential to bifurcate depending on the bids the debtors receive, into a “track A” sales process for some of assets, and a “track B” process for other assets.

Specifically, the track A schedule may include any bid for a transaction including all or any portion of the assets of Proterra Transit or Proterra Energy, whereas the track B schedule may include bids for all company assets that are not sold in connection with the track A process, except Proterra Valence.

The initial indication of interest deadline is Sept. 18. The qualified bid submission deadline is Oct. 16 for track A assets and Nov. 6 for track B assets.

Auctions, if any, will be held on Oct. 19 for the track A assets and Nov. 9 for the track B assets.

Sale hearing are set for Oct. 26 for the track A assets and Nov. 16 for the track B assets.

Moelis & Co. LLC is acting as the company’s investment banker.

Burlingame, Calif.-based Proterra designs and manufactures zero-emission electric transit vehicles and EV technology solutions for commercial applications. The Chapter 11 case number is 23-11120.

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