Volta Trucks, the Sweden-based electric truck manufacturer with operations in the United Kingdom, is actively seeking an acquisition deal to rescue the company from administration, according to a source close to the matter. The move comes after the company filed for bankruptcy earlier this week, a decision driven by the bankruptcy of its key supplier, Proterra, and difficulties with its battery supply chain.
“We were 30 days out from production,” said the source, who requested anonymity. “The startup had raised around 460 million euros ($488 million) from investors.”
Volta Trucks had selected an Austrian factory for mass production and taken orders for more than 5,000 vehicles. Customers remain interested in taking delivery of their vehicles, the source indicated.
The clock is ticking for Volta Trucks' management. The team has a narrow window to secure an acquisition deal before bankruptcy administrators begin the process of liquidating assets to minimize creditors' losses. “Management has received initial queries from 10 to 20 strategic or financial investors,” the source disclosed.
The administrators appointed for Volta Trucks' UK operations, Alvarez & Marsal Europe (A&M), stated, “We will continue to consider the options for the company as we search for a potential buyer to secure the future of the business.”
The startup's leadership commenced discussions with investors on Thursday and aims to elicit a viable bid by next week, according to the source.
The challenges faced by Volta Trucks mirror those in the broader electric vehicle industry. Several startups, like Proterra and Lordstown Motors, have initiated bankruptcy proceedings as inflationary pressures reduce access to investment capital.