Vicinity Motor Corp. Enters Workout Agreement to Develop Restructuring Plan with Creditors

Vicinity Motor Corp., a North American supplier of commercial buses and electric vehicles, announced a workout and financial restructuring agreement with secured lenders Royal Bank of Canada and Export Development Canada. This plan addresses existing demands regarding outstanding credit facilities, aiming for financial stability.

The workout terms cover a 60-day period for discussions on revenues, debt structures, and reorganization initiatives. Vicinity will resume limited operations, and lenders will retain their previously asserted rights. A restructuring plan is expected, potentially including payment agreements and creditor protections.

During this period, Vicinity aims to maintain asset value, execute deliveries, and support technical and parts programs. The company will collaborate with vendors, customers, and partners to return to full operations within the designated timeframe.

President Brent Phillips expressed optimism, emphasizing the support from creditor partners and Vicinity's role in the passenger transportation industry. The company's backlog of fuel-neutral bus orders, including clean diesel and electric buses, forms a strong foundation for the workout plan.