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Proterra receives confirmation of Chapter 11 plan of reorganization
By Sarah Lizee
Olympia, Wash., March 7 – Proterra Inc. received confirmation of its fifth amended Chapter 11 plan of reorganization on Wednesday, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.
Other secured claims, other priority claims and first-lien claims are unimpaired by the plan.
Holders of second-lien convertible note claims will receive, on account of a pro rata $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.
The claims will further be reduced pro rata by the total amount of any Proterra Energy transition costs paid by the debtors.
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.
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