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Proterra files bankruptcy


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On 5/13/2024 at 12:45 PM, Busjack said:

It also seems like Wirepoints thought the Gillig was a Proterra.

I sent them a message on their comment form, and received an email back that the author changed the article and removed the picture of Rep. Casten with the electric bus. While he was correct that the Pace buses on order are from Proterra, I don't think he stated clearly enough that the current bus is not.

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  • 2 weeks later...

New Flyer release that BC Transit is buying 33 BEBs. BC Transit had previously  filed an objection in the Proterra bankruptcy based, in part, in build deficiencies in the initial 10 buses. BC Transit subsequently announced "the decision has been made for Phoenix Motors not to assume the BC Transit contracts. This was approved and confirmed by the courts on March 5, meaning there is no contractual obligation between BC Transit and Phoenix. As a result, BC Transit will not receive its first 10 electric buses from Phoenix Motors." BC is also buying 33 from Nova Bus.

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  • 2 months later...
15 hours ago, The Bus Doctor said:

... Please use caution Pace. Maybe give Gillig a shot. Sounds like they have a contractional obligation.

This is scattered all over the place, but the preceding post gets to the heart of the matter As I mentioned under Pace Electric Buses, Phoenix Motorcars bought the Proterra Transit business at a bankruptcy auction. The existing contracts were assigned as a matter of law, but the purchaser had the right to reject any contract that was unfavorable. Apparently there was a negotiation over this, and BC Transit got out of its contract and issued contracts to New Flyer and Nova Bus. Since Nova Bus is leaving the U.S. market, Pace and CTA can't do that, but New Flyer and Gillig are still available. As noted starting here in the 600s topic, CTA's contract was also rejected, but, unlike BC Transit, the CT Board assigned the contract to PhoenixEV, anyway. This is inexplicable because (1) it would have been assigned as a matter of law, and (2) most of the 600s are sidelined. On the Pace side, Pace didn't try to get out of the contract, and must be figuring that waiting PhoenixEV out is quicker than resoliciting from NF and Gillig.

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8 hours ago, Busjack said:

This is scattered all over the place, but the preceding post gets to the heart of the matter As I mentioned under Pace Electric Buses, Phoenix Motorcars bought the Proterra Transit business at a bankruptcy auction. The existing contracts were assigned as a matter of law, but the purchaser had the right to reject any contract that was unfavorable. Apparently there was a negotiation over this, and BC Transit got out of its contract and issued contracts to New Flyer and Nova Bus. Since Nova Bus is leaving the U.S. market, Pace and CTA can't do that, but New Flyer and Gillig are still available. As noted starting here in the 600s topic, CTA's contract was also rejected, but, unlike BC Transit, the CT Board assigned the contract to PhoenixEV, anyway. This is inexplicable because (1) it would have been assigned as a matter of law, and (2) most of the 600s are sidelined. On the Pace side, Pace didn't try to get out of the contract, and must be figuring that waiting PhoenixEV out is quicker than resoliciting from NF and Gillig.

So the warranty is null and void as well?? Poor cta got burned by these guys all they can do is shelf the buses now. The first model 600 to 606 they did. I see them running until they break and it's  Cest la vie!! Sometimes you just get burned but they should get some legal recourse but I!m not sure they have a case it's moot. I'm kind of surprised at Pace they have a living example of a Gillig electric. It can't suck that bad can it. They trust someone's word over what they have produced. Phoenix /Proterra has not produced. 

I see Pace has electric paratransits maybe they could run those in light service like in Elgin on the mainline feeders. Something to ponder anyway....

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3 hours ago, The Bus Doctor said:

So the warranty is null and void as well??

Nope. As I noted after Ordinance 024-076 was posted, "Phoenix has agreed to assume Proterra’s obligations under the contract, including all service and bond obligations, the pricing of the existing contract, and the other terms and conditions." So, whatever could have been done after the contract was rejected, Phoenix agreed to a contract "including all service ... obligations."

Similarly, Melissa Metzger previously said that Pace would not accept the buses unless the warranties were good.

I don't expect anyone else on this forum to have my understanding of bankruptcy law, and I didn't understand all of the filings, but as a Bus Doctor, you should have known more than at least implying that there was a preexisting Phoenix Motorcars bus that looked exactly like a Proterra except for the name badge and that the transit authorities would accept buses without warranties, and then make wild conclusions based on those erroneous premises.

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21 hours ago, Busjack said:

Nope. As I noted after Ordinance 024-076 was posted, "Phoenix has agreed to assume Proterra’s obligations under the contract, including all service and bond obligations, the pricing of the existing contract, and the other terms and conditions." So, whatever could have been done after the contract was rejected, Phoenix agreed to a contract "including all service ... obligations."

Similarly, Melissa Metzger previously said that Pace would not accept the buses unless the warranties were good.

I don't expect anyone else on this forum to have my understanding of bankruptcy law, and I didn't understand all of the filings, but as a Bus Doctor, you should have known more than at least implying that there was a preexisting Phoenix Motorcars bus that looked exactly like a Proterra except for the name badge and that the transit authorities would accept buses without warranties, and then make wild conclusions based on those erroneous premises.

Well what I nention is an unforseen circumstance. No way did the customer know that Proterra would go out of business. Alot of regular Joe's would have to go through major legal hurdles to get the same results. But it makes sense to play nice. They are teeing off with agencies with up to million plus dollar budgets, with federal pull that can have an even greater pull. They may have lost the cta. Pace if they want to play ball with them is their call. Maybe instead of seeing the likenesses they need to see what has changed. But starting out a company in the negative with all these defective proterras is not my idea of a fine corporation. I won't be buying their stock...

and what you say about my quote doesn't make sense but that's the friendly art of debate...

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1 hour ago, The Bus Doctor said:

and what you say about my quote doesn't make sense but that's the friendly art of debate...

What I said was to the point, while what you said about "What was the Phoenix design before? 20 years in the business has to produce something." and "So the warranty is null and void as well?? Poor cta got burned by these guys all they can do is shelf [should be 'shelve"] the buses now. The first model 600 to 606 they did. I see them running until they break and it's  Cest la vie!! Sometimes you just get burned ..." is, as I noted factually incorrect, and your conclusion to just junk the buses now, when they are returning to service is hysteria, unless something like cracks in the shell show up. And it is abundantly clear that you don't have the legal training to make the comment "...but they should get some legal recourse but I!m not sure they have a case it's moot," as I'm sure you don't know the legal definition of moot.

On your point in your last post, one of the points made by objectors in the bankruptcy case was that Phoenix Motorcars didn't have the capability to perform the assigned contracts. On that basis, BC Transit and apparently Miami-Dade pulled out. CTA reaffirmed its contract. Time will tell if PhoenixEV can perform. And if CTA does get burned, it won't be the first time. Think NABI, but CTA got legal recourse for that.

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