Proterra’s disclosure statement OK’d; plan hearing set for March 5

By Sarah Lizee

Olympia, Wash., Jan. 26 – Proterra Inc. received approval of the disclosure statement for its Chapter 11 plan of reorganization, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for March 5.

Under the plan, other secured claims and other priority claims are unimpaired.

First-lien claims are also unimpaired, with holders receiving cash equal to their claims. To the extent there are any undrawn letters of credit issued under the company’s first-lien credit facility as of the effective date, they will be cash collateralized.

Holders of second-lien convertible note claims will receive, on account of a $10 million portion of the claims, their pro rata share of all of the equity of reorganized Proterra. The claims will be reduced pro rata by the reorganized Proterra retained cash, and the reorganized Proterra retained cash will be retained by reorganized Proterra on the effective date. The claims will also be reduced pro rata by the amount that the aggregate cure claims payable on account of the debtors’ assumption of contracts and leases attributable to Proterra Energy exceeds $6.5 million. After that, holders will receive cash in an amount equal to their pro rata share of the remaining claims.

However, if a plan support agreement termination distribution occurs, holders of second-lien convertible notes claims will receive cash in an amount equal to their claims, excluding any settled amounts.

Holders of general unsecured claims will receive a pro rata share of second-priority interests in a distribution trust. This is expected to result in a recovery of 15.7% to 24.8%.

Intercompany claims will be reinstated or canceled, released and extinguished.

OpCo interests will be either canceled or reinstated.

TopCo interests will be canceled.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.