Vicinity Motor Corp. Ends Workout Plan Without Financial Restructuring

On October 11, 2024, Vicinity Motor Corp., a supplier of commercial electric vehicles, announced the conclusion of its Workout Plan without achieving successful financial restructuring. The company had been negotiating with Royal Bank of Canada and Export Development Canada, but failed to secure renewed credit facilities, raising concerns about potential receivership enforcement.

Since August 2024, Vicinity faced operational constraints due to asset access restrictions imposed by creditors. These restrictions severely hindered financial management and operational capabilities. Although the Workout Plan allowed limited operations during negotiations, enhanced constraints added further stress.

The uncertainty surrounding creditor actions leaves the future of Vicinity and its workforce in question. The company's management cease trade order remains in effect as it works to file delayed financial reports. Without these filings by October 18, 2024, trading will be halted in Canada.