Luxor Capital Group to rescue Volta Trucks from the brink of bankruptcy

In a surprising turn of events, Luxor Capital Group, a hedge fund holding shares and lending funds to Volta Trucks, has emerged as the potential savior of the troubled London-based commercial EV startup. Volta Trucks, known for its ambitious vision of revolutionizing the commercial trucking industry with its Volta Zero, faces the grim prospect of bankruptcy. However, Luxor's interest could inject new life into the struggling company, potentially safeguarding numerous jobs in the United Kingdom.

Volta Trucks, which began with just a vehicle design sketch in 2019, quickly progressed to the prototype launch of the Volta Zero in less than a year. Along the way, Volta garnered substantial attention and support, with multiple funding rounds and a growing list of pre-orders for its expanding lineup of Zero Trucks.

Volta's ambitions extended beyond Europe, with plans to expand its presence in the United States. As 2023 dawned, the company seemed poised to finally enter the European market, albeit slightly behind schedule, thanks to increased purchase commitments and the necessary certifications for official sales.

As recently as April, Volta had initiated series production in Austria, with deliveries scheduled for the third quarter of the year. Therefore, the announcement of Volta Trucks filing for bankruptcy in October caught many off guard, with the company attributing its financial woes to challenging capital markets and the bankruptcy of its battery supplier, Proterra, which had declared Chapter 11 in August.

Volta Trucks explained, "The recent news that our battery supplier [Proterra] has filed for Chapter 11 Bankruptcy has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce. The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already challenging capital-raising environment for electric vehicle players."

It appeared that Volta had run out of options on its path to profitability. As we all know, the road for startups in the EV industry is filled with pitfalls. Yet, just as the bankruptcy proceedings seemed poised to shut the door on Volta Trucks, Luxor Capital Group stepped in with a lifeline.

Luxor Capital Group, which holds a substantial stake in Volta Trucks and is one of its significant lenders, is currently in the final stages of negotiating a deal to acquire the startup and continue its operations. If the deal comes to fruition, it could rescue hundreds of jobs in the UK, where Volta primarily operates. Before the bankruptcy filing, Volta employed approximately 600 people in the UK, along with an additional 250 in other locations, such as its Swedish headquarters and offices in Paris.

While an agreement is reportedly in progress and could potentially be completed in the coming week, it's essential to acknowledge that the timeline could be subject to changes as negotiations are finalized.

Via