Aldergrove, BC-based Vicinity Motor Corp (VMC), formerly known as Grande West Transportation Group, opened an electric 100,000-square-foot bus assembly facility in Ferndale in 2023. During the 4th quarter of 2024, the company announced the following.
- the company was declared insolvent after failing to make payments on loans
- NASDAQ and the Toronto Venture Exchange delisted Vicinity Motor Corp. (NDAQ:VEV, TSXV:VMC) and the company did not appeal
- all Board of Directors resigned from the board
Pursuant to an order (the “Receivership Order”) of the Supreme Court of British Columbia granted on October 21, 2024 (the “Receivership Date”), FTI Consulting Canada Inc. was appointed receiver and manager (the “Receiver”) without security of all the assets, undertakings and property of Vicinity Motor Corp., Vicinity Motor (Bus) Corp., Vicinity Motor (Bus) USA Corp., and Vicinity Motor Property, LLC (collectively, the “Debtors”) acquired for, or used in relation to a business carried on by the Debtors.
On October 24, 2024, Vicinity Motor Corp., Vicinity Motor (Bus) Corp., Vicinity Motor (Bus) USA Corp., and Vicinity Motor Property, LLC (collectively, the “Debtors”) filed for relief under Chapter 15 of the U.S. Bankruptcy Code.
– FTI Consulting Canada Inc.
US Chapter 15 bankruptcy proceedings deal with recognizing and assisting international insolvency cases.
The Washington State Department of Commerce awarded the Regional Economic Partnership at the Port of Bellingham (Port) a $300,000 economic development strategic reserve fund grant to assist VMC in building its new bus assembly facility, according to a 2021 company press release. The Port said in a press release at the time, “The economic development grant for VMC contributes to over $22 million dollars in investments in land acquisition, capital construction, and the creation of 20 living wage clean technology jobs at the Ferndale location, with plans for expansion.”
VMC has said the Ferndale facility, established as a US foreign trade zone, cost $22 million. The company announced in 2021 that the State of Washington had placed VMC products on a statewide purchasing contract enabling state transit agencies to purchase from VMC. The facility was reportedly capable of producing 1,000 electric, CNG, gas and clean-diesel vehicles annually.
Whatcom Transportation Authority (WTA) received $8,862,951 in federal grants from the Department of Transportation in 2022 to be used to replace diesel buses with electric ones. At the time, WTA officials said they expected 12 of WTA’s 62 fixed route buses would be electric after receiving the new buses in 2024. WTA also said their goal is to convert to 100% zero emission vehicles no later than 2040.
FTI Consulting says, VMC currently occupies 4 locations across Canada and the US and there’s an inventory of specialized fleet of transit buses and freight trucks for public and commercial use available with a combined value of $35.4M CAD. There is a collection of shop equipment, furniture and
spare parts inventory collectively valued at $4.0M CAD. FTI is seeking offers to purchase these assets.
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