Here's what Proterra filing Chapter 11 bankruptcy means for Greenville, Greer operations
Electric bus and truck maker Proterra is seeking Chapter 11 bankruptcy protection from a federal court in Delaware.
The Burlingame, California, company is a major supplier of buses to transit systems across the nation. A statement on Proterra’s website Monday said that it intends to maintain normal operations and will file motions with the court to use existing capital to keep funding operations, including paying employees, vendors and suppliers.
The company has two locations in South Carolina: one in Greenville developing vehicles and one in Greer producing manufacturing battery systems. The Greenville facility opened in 2010 and manufactures electric buses. As of 2021, Proterra in Greenville employed 350 workers. The Greer factory opened in 2022.
The company sells heavy truck, van, bus and off-highway equipment equipment in the U.S., European and Asia-Pacific markets.
Chapter 11 bankruptcy, often referred to as “reorganization bankruptcy,” allows the company to operate its business, and with court approval, borrow new money. Filing for Chapter 11 means a plan to reorganize the debt is proposed and voted on by affected creditors.
“Proterra is at the forefront of the innovations that are driving commercial vehicle electrification. We know we’re building industry-leading products that our customers want and need,” said Gareth Joyce, Proterra CEO. “The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation. This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
Last March, the company’s Q4 report revealed a $1.3 billion backlog in contracted orders due to supply chain and logistics issues.
In 2021, President Joe Biden virtually toured the plant in Greenville.
“While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously. As commercial vehicles accelerate towards electrification, we look forward to sharpening our focus as a leading EV battery technology supplier for the benefit of our many stakeholders,” said Joyce.
Reporting from the Associated Press contributed to this story.
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Savannah Moss covers Greenville County politics and growth & development. Reach her at smoss@gannett.com.
This article originally appeared on Greenville News: What Proterra Chapter 11 filing means to Greenville, Greer operations
