Vicinity Motor Corp. Enters Into Workout Agreement to Develop a Restructuring Plan With Creditors
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), a North American supplier of commercial buses and electric vehicles, has reached an agreement with its secured lenders to execute a workout and financial restructuring plan. This plan aims to address outstanding credit facilities and progress towards financial stability. The company and its secured lenders, including Royal Bank of Canada and Export Development Canada, have agreed to a 60-day workout period.
During this time, Vicinity will return to operations, discussing revenues, debt structures, and reorganization initiatives with the lenders. The company expects to enter into a restructuring plan that may include agreements for payment and creditor rights. Vicinity will focus on preserving asset value, executing in-process deliveries, and maintaining technical and parts support programs.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), fornitore nordamericano di autobus commerciali e veicoli elettrici, ha raggiunto un accordo con i suoi creditori garantiti per attuare un piano di ristrutturazione finanziaria. Questo piano mira a gestire le linee di credito in sospeso e a procedere verso la stabilità finanziaria. L'azienda e i suoi creditori garantiti, tra cui la Royal Bank of Canada e l'Export Development Canada, hanno concordato un periodo di ristrutturazione di 60 giorni.
Durante questo periodo, Vicinity tornerà alle operazioni, discutendo di ricavi, strutture di debito e iniziative di riorganizzazione con i creditori. L'azienda prevede di entrare in un piano di ristrutturazione che potrebbe includere accordi sui pagamenti e diritti dei creditori. Vicinity si concentrerà sulla preservazione del valore degli attivi, sull'esecuzione di consegne in corso e sul mantenimento dei programmi di supporto tecnico e ricambi.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), proveedor norteamericano de autobuses comerciales y vehículos eléctricos, ha llegado a un acuerdo con sus prestamistas asegurados para ejecutar un plan de reestructuración financiera. Este plan tiene como objetivo abordar las facilidades de crédito pendientes y avanzar hacia la estabilidad financiera. La empresa y sus prestamistas asegurados, incluidos Royal Bank of Canada y Export Development Canada, han acordado un período de reestructuración de 60 días.
Durante este tiempo, Vicinity regresará a la operación, discutiendo ingresos, estructuras de deuda e iniciativas de reorganización con los prestamistas. La empresa espera entrar en un plan de reestructuración que puede incluir acuerdos sobre pagos y derechos de los acreedores. Vicinity se centrará en preservar el valor de los activos, ejecutar entregas en proceso y mantener programas de soporte técnico y de piezas.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)는 북미 상업용 버스 및 전기차 공급업체로서 보증된 대출자들과 함께 재정 구조 조정 계획을 실행하기 위한 협정을 체결하였습니다. 이 계획은 미지급 신용 시설을 처리하고 재정적 안정성을 향해 나아가는 것을 목표로 합니다. 회사와 보증된 대출자들, 즉 캐나다 왕립 은행 및 캐나다 수출 개발 은행이 60일간의 구조 조정 기간에 합의했습니다.
이 기간 동안 Vicinity는 운영에 복귀하여, 수익, 부채 구조 및 대출자들과의 재조직 이니셔티브에 대해 논의할 예정입니다. 회사는 지급 및 채권자 권리에 대한 합의를 포함할 수 있는 재구성 계획을 수립할 것으로 예상하고 있습니다. Vicinity는 자산 가치를 보존하고, 진행 중인 납품을 실행하며, 기술 지원 및 부품 여유 프로그램을 유지하는 데 집중할 것입니다.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), un fournisseur nord-américain de bus commerciaux et de véhicules électriques, a conclu un accord avec ses créanciers garantis pour mettre en œuvre un plan de restructuration financière. Ce plan vise à traiter les facilités de crédit en souffrance et à progresser vers la stabilité financière. L'entreprise et ses créanciers garantis, y compris la Royal Bank of Canada et Export Development Canada, ont convenu d'une période de restructuration de 60 jours.
Durant cette période, Vicinity reviendra à l'exploitation, en discutant des revenus, des structures de dettes et des initiatives de réorganisation avec les créanciers. L'entreprise s'attend à entrer dans un plan de restructuration qui pourrait inclure des accords de paiement et des droits des créanciers. Vicinity se concentrera sur la préservation de la valeur des actifs, l'exécution des livraisons en cours et le maintien des programmes de support technique et de pièces détachées.
Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC), ein nordamerikanischer Anbieter von Linienbussen und Elektrofahrzeugen, hat eine Vereinbarung mit seinen gesicherten Gläubigern getroffen, um einen Finanzrestrukturierungsplan umzusetzen. Dieser Plan hat zum Ziel, ausstehende Kreditlinien zu bewältigen und auf finanzielle Stabilität hinzuarbeiten. Das Unternehmen und seine gesicherten Gläubiger, darunter die Royal Bank of Canada und Export Development Canada, haben sich auf einen 60-tägigen Restrukturierungszeitraum geeinigt.
In dieser Zeit wird Vicinity in den Betrieb zurückkehren und Einnahmen, Schuldenstrukturen sowie Reorganisationsinitiativen mit den Gläubigern besprechen. Das Unternehmen erwartet, in einen Restrukturierungsplan einzutreten, der möglicherweise Vereinbarungen zur Zahlung und Gläubigerrechten umfasst. Vicinity wird sich auf die Erhaltung des Vermögenswerts, die Ausführung von laufenden Lieferungen und die Aufrechterhaltung von technischen und Ersatzteilunterstützungsprogrammen konzentrieren.
- Agreement reached with secured lenders for a workout and financial restructuring plan
- 60-day workout period to discuss revenues, debt structures, and reorganization initiatives
- Company to return to operations during the workout period
- Strong backlog of fuel neutral bus orders, including clean diesel and electric buses
- Outstanding credit facilities requiring restructuring
- operations instead of full operations
- Potential changes to payment terms and creditor rights
- Financial instability requiring restructuring efforts
Insights
Vicinity Motor Corp's workout agreement with secured lenders is a critical development for the company's financial stability. This 60-day period allows VMC to negotiate a restructuring plan while maintaining operations. The focus on preserving asset value and executing existing orders is important for maintaining stakeholder confidence.
However, the need for restructuring indicates significant financial distress. The company's ability to secure favorable terms and return to full operations within the timeframe will be pivotal. Investors should closely monitor the outcome of these negotiations, as they will significantly impact VMC's future viability and potential for recovery.
VMC's situation reflects broader challenges in the EV industry, particularly for smaller players. The company's focus on Class 3 commercial EV trucks positions it in a growing but competitive market. The mention of a strong backlog in fuel-neutral buses suggests a strategic pivot towards a more diverse product line.
This restructuring period could allow VMC to realign its resources towards more immediate revenue-generating segments. The emphasis on "energy efficient transit bus product line" indicates a potential shift in focus. Investors should assess how this restructuring might affect VMC's long-term positioning in the evolving EV market landscape.
The workout agreement's impact on VMC's supply chain and operations is crucial. Maintaining "technical and parts support programs" during operations is essential for customer retention and future recovery. However, the company may face challenges in managing supplier relationships and inventory during this period.
The ability to execute "in process deliveries" will be critical for cash flow and customer trust. Investors should monitor how effectively VMC can maintain its supply chain integrity and fulfill existing orders during this restructuring phase, as it will significantly influence the company's recovery prospects and market position post-restructuring.
Vicinity Seeks to Forge Clear Path Forward in Ongoing Discussions with Creditors
VANCOUVER, BC / ACCESSWIRE / August 21, 2024 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC) ("Vicinity" or the "Company"), a North American supplier of commercial buses and electric vehicles, today announced it has reached an agreement with its secured lenders to execute a workout and financial restructuring plan to address the previously announced demands from Royal Bank of Canada and Export Development Canada (the "Secured Lenders") in respect of outstanding credit facilities to progress towards financial stability for the Company.
Vicinity and the Secured Lenders have agreed to the terms of the workout for the next 60 days, discussing with the Secured Lenders its revenues, debt structures, and initiatives to reorganize. During this period, the Company will return to limited operations and the Secured Lenders will retain all rights previously asserted. Prior to the conclusion of the workout period, Vicinity expects to have entered into a restructuring plan that may include agreements for payment and creditor rights and protections.
During this period Vicinity will work to preserve the value of its assets, execute in process deliveries, and facilitate technical and parts support programs. The Company will continue to work closely with vendors, customers, and partners during this period as it endeavors to return to normal full operations within the 60-day period.
"We are pleased to announce this support from our creditor partners and the opportunity to further the important role Vicinity plays in the passenger transportation industry and as a leader in Class 3 commercial EV truck manufacturing," said Brent Phillips, President of Vicinity Motor Corp. "Our strong backlog of fuel neutral bus orders, including clean diesel and electric buses, provides a solid foundation for this workout plan. The market opportunity for Vicinity buses and industry metrics support accelerated development of our energy efficient transit bus product line while the Class 3 commercial truck market continues to develop."
About Vicinity Motor Corp.
Vicinity Motor Corp. (NASDAQ:VEV) (TSXV:VMC) ("VMC") is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
Company Contact:
John LaGourgue
VP Corporate Development
604-288-8043
IR@vicinitymotor.com
Investor Relations Contact:
Lucas Zimmerman
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the outcome of workout and financial restructuring plans with its Secured Lenders, uncertainties related to economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, production prospects at Vicinity's assembly facility in the State of Washington, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE: Vicinity Motor Corp.
View the original press release on accesswire.com
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