Royal Bank of Canada & EDC Issue Demand Letters to Vicinity Motor Corp

Vicinity Motor Corp, a North American supplier of commercial electric vehicles, has received demand letters from Royal Bank of Canada and Export Development Canada. The creditors are seeking full payment of outstanding debts under their respective credit facilities. Royal Bank demands payment by August 19, 2024, while EDC seeks immediate payment. The total amount due to RBC is approximately USD 19.2 million and USD 8.6 million to EDC, with additional interest and fees accruing.

The secured lenders have issued Notices of Intention to Enforce Security under Canada's Bankruptcy and Insolvency Act. Vicinity plans to negotiate with creditors to find a resolution but acknowledges there are no guarantees of success. The company remains committed to exploring all available legal options to continue supporting its customers.

As of March 31, 2024, Vicinity had assets valued at USD 77.8 million, including significant inventory and cash. The company has faced challenges, including supply chain disruptions and higher-than-expected working capital requirements. Despite these issues, Vicinity aims to maintain trading on NASDAQ and the TSX Venture Exchange.