Bus builder Ebusco raises 36 million euros and avoids bankruptcy

This article was last updated on November 20, 2024

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Bus builder Ebusco raises 36 million euros and avoids bankruptcy

Dutch electric bus builder Ebusco has managed to raise enough money to avert the company’s bankruptcy. Ebusco raised 36 million euros by issuing additional shares.

Christian Schreyer, director of Ebusco, emphasizes that the coming months will remain challenging for the company. “But with the dedication and determination I have seen at Ebusco, I am confident we can improve our performance.”

The long-standing financial problems at Ebusco came to the surface in October when two customers canceled large bus orders. Due to a shortage of parts and personnel, Ebusco was unable to deliver ordered buses on time. Missing deadlines not only cost the company turnover, but also many fines to waiting customers.

Before the judge

In the meantime, Ebusco was already in dire straits because the bank’s credit line ran out in September. The bus builder then had more than 6 million euros in unpaid invoices outstanding and was in danger of no longer being able to pay salaries. The company tried to force customer Qbuzz through the courts to still purchase the canceled order of buses.

When the judge made that demand wiped off the table, there was no longer a penny in the account as of November 1. Ebusco then stopped production. The company’s share, once worth a total of 1.4 billion euros on the stock exchange, was now worth only a few cents.

Last week, Ebusco wrote in the accompanying documents for the share issue that a deficit of 60 million euros would arise if it were not possible to raise 36 million euros from shareholders. This would make bankruptcy a reality in the first three months of next year.

Rescue plan

A broad rescue plan was intended to prevent Ebusco from reaching its last stop after the New Year. Shareholders approved a plan to sell through the issuance of new shares to raise the necessary 36 million. In addition, 5 million euros worth of items were sold, such as chairs, wheels, tires, cameras and mirrors.

In addition, Ebusco is trying to sell 48 buses from the canceled orders worth 22.7 million euros to other carriers. 21 ordered buses can be delivered earlier to the German NIAG.

But, it said in one explanation on the share issue, if one of the parts of the rescue plan were to fail, Ebusco would no longer be able to meet its payment obligations in the short term. This makes bankruptcy virtually unavoidable.

Loyal investors, such as ING, the Van der Valk family and the American Heights Capital Management, did not initially drop Ebusco. They promised to buy shares or convert debt into shares. In addition, the Chinese battery manufacturer Gotion an interest.

This meant that Ebusco was assured of more than 19 million euros on Monday. This left two days left to raise just under half of the 36 million euros. That has now been achieved.