Sweden’s Volta Trucks AB is planning to file for bankruptcy following supply-line issues, according to Byggmastare Anders J Ahlstrom AB, one of the electric vehicle startup’s largest shareholders.
(Bloomberg) — Sweden’s Volta Trucks AB is planning to file for bankruptcy following supply-line issues, according to Byggmastare Anders J Ahlstrom AB, one of the electric vehicle startup’s largest shareholders.
The decision comes after Volta’s battery supplier Proterra Inc. went into voluntary Chapter 11 reorganization, fueling uncertainty among stakeholders and rendering the company “impossible to fund,” according to a statement late Monday. The US Chapter 11 filing came “at the absolute worst time when production was to be scaled up,” the holding said.
Volta in November raised roughly €600 million ($633 million) as it prepared to ship its first vehicles next year. The company had been targeting an initial public offering in 2024, according to Chief Executive Officer Essa Al-Saleh.
Supply-chain issues and shortages of key parts have tainted investors’ outlook across the industry. Volta had been one of several Swedish startups trying to lead on sustainable transport in a country where Volvo AB and Volkswagen AG’s Scania have a long history.
Byggmasteren owned about 10% of the company’s shares as of June 30, a holding which is now worthless, according to the statement. It also invested about €4 million in a secured loan to Volta in the third quarter, the holding said, adding that the loan’s value is now “difficult to assess.”
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