European zero emission start up Volta, which went into receivership last month following financial problems with its electric power train supplier Proterra, may have had a lifeline with the Luxor Capital Group announcing it is in advanced talks with Volta’s administrators.
The electric truck maker filed for bankruptcy in Sweden last month and appointed administrators in the UK a few days later, following the collapse of its battery supplier, Proterra.
Proterra filed for Chapter 11 Bankruptcy in September, which Volta said had a “significant impact” on its manufacturing plans, reducing the volume of vehicles that it had forecast to produce.
The uncertainty with its battery supplier also negatively affected its ability to raise sufficient capital in what it described as an “already challenging capital-raising environment” for electric vehicle (EV) manufacturers.
At the time, Andrea Jakes, managing director of administrators Alvarez and Marsal, said that it would continue to consider the options for the company as it searched for a potential buyer to secure the future of the business.
The administrators declined to comment but reports in some media outlets revealed that the New York-based Luxor Capital Group, which was both a shareholder in and lender to Volta, was closing in on a deal to buy and take control of the Volta business.
It said that an agreement could be reached in the coming days, although sources also warned that the timetable could slip. Volta’s administration placed 850 jobs in danger, of which 600 were in the UK where the group had opened a service hub in North London.