The hedge fund Luxor attacks bankrupt electric trucks, Volta Trucks

One of the biggest creditors of Volta Trucks, the electric car startup that filed for bankruptcy last month, is closing in on a deal to buy it from administrators.

Luxor Capital Group, which was both a shareholder and lender to Volta, is in advanced talks with the company’s administrators over a deal that could save hundreds of UK jobs, Sky News has learned.

Auto industry sources said on Thursday that Luxor had emerged as the most likely buyer of the British company.

An agreement could be reached in the coming days, according to one industry executive, although they warned that the timetable could still slip.

Volta Trucks filed for bankruptcy in Sweden, where the company is headquartered, last month and appointed administrators to its main UK operations days later.

The company employed 600 people in the UK out of a total workforce of around 850, and although the exact figures were unclear, a significant number of UK jobs are expected to be saved.

Volta Trucks had been carrying out customer trials of its all-electric vehicle, the Volta Zero, in both the UK and on the continent and recently opened a service center in North London.

The emission-free truck, which has a range of up to 200 km (124 miles), is designed to make multiple deliveries within a large city or town.

In February last year, the company raised €230 million. in a financing round in which Luxor Capital, a US-based credit hedge fund, participated.

Its other creditors are understood to include B-FLEXION.

Alvarez & Marsal, which has been handling Volta Trucks’ administration, declined to comment on Thursday.

Last month, the startup said that prepared to appoint administrators: “We piloted in five countries in Europe and received great feedback which led to a strong pipeline of highly regarded customers who wanted to introduce our Volta Zero Trucks into their fleets.

“However, like all scale-ups in the electrical manufacturing sector, Volta Trucks has faced challenges along the way.

“The latest news that our battery supplier [Proterra] has filed for Chapter 11 bankruptcy, has had a significant impact on our manufacturing plans, reducing the amount of vehicles that we had expected to produce.

“The uncertainty with our battery supplier also negatively impacted our ability to raise sufficient capital in an already challenging capital raising environment for EV players.”


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