Proterra’s disclosure statement draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Jan. 18 – Proterra Inc.’s disclosure statement for its Chapter 11 plan of reorganization drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The U.S. trustee said he objects to the motion because it imposes on public shareholders the requirement to return an opt-out form to avoid releasing their direct claims against non-debtor parties, including claims for fraud and intentional misconduct, even though the shareholders will receive no distribution under the plan.

Vara also said the various notices and opt-out forms are unnecessarily confusing and, with respect to beneficial holders, their time to opt out of the releases is truncated.

The U.S. trustee said he also objects to the motion because the disclosure statement does not contain adequate information concerning third-party releases.

A hearing on approval of the disclosure statement is scheduled for Jan. 23.

Burlingame, Calif.-based Proterra designs and manufactures zero-emission electric transit vehicles and EV technology solutions for commercial applications. The company filed bankruptcy on Aug. 7 under Chapter 11 case number 23-11120.

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