The stigma of going through bankruptcy is real, whether personal or corporate. But sometimes, it turns out OK. Consider Proterra Inc., a maker of electric transit buses, battery packs and a developer of charging infrastructure.
Several startups in the electrification space ran out of financial runway. They either disappeared or were absorbed by other companies. Proterra’s electric transit bus business tasted early success after launching in 2004. Investors like automaker General Motors’ venture arm were early supporters.
Proterra’s expansion into battery making and charging infrastructure in the past decade was expensive. And the bus business gobbled up much of the $640 million raised in a 2021 reverse merger with special purpose acquisition company ArcLight Clean Transition Corp.
Proterra took on a lot of debt during the pandemic. It was forced to pay sky-high prices for scarce components and supplies. Ultimately, loan covenants that limited its ability to raise more capital hastened its Chapter 11 bankruptcy reorganization filing in August 2023.
That put Proterra’s three business units – Transit, Powered and Energy – up for bankruptcy …