Hedge fund Luxor Capital has completed the acquisition of the UK business and assets of Volta Trucks, forming a separate sub-company named “Volta Commercial Vehicles Limited.” The financial details of the transaction have not been disclosed.
Volta Trucks filed for insolvency in October, encompassing not only its Swedish unit but also the crucial trading company, Volta Trucks Limited, based in England. The insolvency was reportedly triggered by the financial troubles of Volta’s battery supplier, Proterra, in August, causing a significant disruption to Volta’s production plans. The subsequent production halt made it challenging for Volta to secure new funding in an already difficult capital environment.
The expected swift agreement with an investor in October did not materialize. However, insolvency administrators Alvarez & Marsal Europe have now unveiled a deal announced a few days ago, with Luxor Capital taking over the company and establishing the sub-company “Volta Commercial Vehicles Limited.” Despite the takeover, reports suggest that most of the approximately 600 British employees at Volta Trucks may still face job uncertainties.
While Volta Trucks originated in Sweden, its primary business operations are centered in England. Luxor Capital had been a major investor in the electric truck manufacturer before its bankruptcy, and the hedge fund increased its stake in Volta Trucks in February 2022, though specific investment details were not disclosed at the time.
Volta Trucks boasts the 16-tonne version of the Volta Zero, which entered series production in April. However, the source of the crucial battery for future production remains uncertain. There is speculation that Proterra, despite its previous challenges, may still be a potential supplier. In November, the Volvo Group acquired Proterra’s battery division, including the development center for battery modules and packs in California and Proterra’s battery assembly factory in South Carolina, opened in January 2023. The exact integration plans for Proterra within the Volvo structure are yet to be revealed.
According to Reuters, Volta Trucks had garnered approximately 460 million euros from investors and secured orders for over 5,000 trucks before filing for bankruptcy.
