Proterra’s cash collateral use terms draw objection from committee

By Sarah Lizee

Olympia, Wash., Sept. 5 – Proterra Inc.’s motion for final approval to access cash collateral drew an objection from the official committee of unsecured creditors, according to documents filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The committee said that, as of the time it filed the objection, the debtors and second-lien secured parties were still negotiating some of the most important and case determinate terms of the proposed relief.

The committee said the terms include “significant and overreaching” new protections in favor of the second-lien secured parties that were not outlined by the original motion, or included in the second interim order.

The group said these new protections shouldn’t be granted generally, let alone without the appropriate notice and input from parties in interest, including the committee.

The committee said adjournment of the Sept. 7 hearing on the proposed final order is necessary to give the parties additional time to work towards a consensual resolution, among other things.

To that end, the committee requested the parties agree to continue to operate under the terms of the existing second interim order for a short period of time. The parties declined, however.

Burlingame, Calif.-based Proterra designs and manufactures zero-emission electric transit vehicles and EV technology solutions for commercial applications. The company filed bankruptcy on Aug. 7 under Chapter 11 case number 23-11120.

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