Vicinity Motor Corp. announced it was unable to work out a plan to restructure its debt with Royal Bank of Canada and Export Development Canada.
It has been served with a Notice of Intention to Enforce Security under the Bankruptcy and Insolvency Act. Vicinity says Royal Bank has also restricted its access to certain assets without notice, affecting its operating ability.
“Accordingly, the Company has been severely constrained in its ability to manage its finances, including vendor and customer obligations,” the company said in a statement.
“The company believes that the creditors will proceed toward receivership enforcement impeding the company’s ability to continue to operate. If that happens, the company will likely be forced to lay off its remaining staff and cease operations.”
