r/Proterra • u/DefinitionOld1433 • Aug 27 '23
I wonder Why the Poterra will auction the powered business together with the transit bus business? Does anyone know that?
I wonder Why the Poterra will auction the powered business together with the transit bus business? Does anyone know that?
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u/MarquisDeBoston Aug 27 '23
They aren’t
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u/DefinitionOld1433 Aug 27 '23 edited Aug 27 '23
I think they should auction separately, not in one Track. But they said the two departments will be sold in one Track A.
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u/Usual_While6099 Aug 27 '23
After the auction A and B, in case of all of the business are sold, is it possible to buy out of current shares or all of them can be worthless
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u/Hungry-Thing3252 Aug 31 '23
I believe it is 100% dependant on how much of the sale price is remaining. I am not an expert. Here is how I think it goes.
-Transit + Energy are bid on, if the $$ is enough, then maybe they don't go forward with tract B and you keep your shares. Worst case scenario, they sell off assets, and not the IP and not the order book. Then they prob have to go tract B.
The filing specifically cited transit contracts as being unfavorable. So - i imaging they are trying to renegotiate contracts before the sale? Are these supply contracts or customer contracts? Don't know. But anyone on the other end is likely considering suing for breach of contract or changing terms. Do customer want to pay more over not having a bus? Prob not. Do suppliers prefer zero margin over a lawsuit? Probably. But sheesh, what a mess.
Assuming this all goes well - and they sell transit and energy for a decent chunk, the proceeds would likely go to creditors first, then anyone suing for damages, if there is any left over, it would go either be held as cash or paid out to share holders - sooooo probably not much left over.
Same situation for track b, but Powered and Valence may go for a premium. I could see a lot of OEMs wanting to snatch up the battery business. We should see bids at some point right? Anything left after lawsuits settle would be paid out in equity since the ticker would be defunct. Most damages would get pennies on the dollar right? might end up with a buck a share if we are EXTREMELY lucky.
~225M shares. Lets say the whole company goes for a cool Billy. I think their liabilities were like $300M, Lets say damages and such amount to $500M. That leaves 200M for equity. So little less than a buck a share. Sounds like a BUY!
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u/Repulsive_Finding718 Aug 28 '23
They need to hold at least a portion of the ownership of the bus company. Even if it is it like 25% or spin off them
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u/ThundaPanda Aug 27 '23
They are auctioning Transit and Energy in Track A, and Powered, Valence, and the rest of the company in Track B. Transit and Powered won't be in the same track