Ebusco announces loan restructuring and major energy contract amid liquidity challenges

Ebusco announces it has reached an agreement on the restructuring of loans that were due mid-August 2025, proceeding in the process of converting loans into liquidity. In addition to the restructuring deal, the Dutch company has announced the signing of a large contract for Ebusco Energy and the convocation of an Extraordinary General Meeting, to be held on 18 August 2025.

Howerver, the company states that “Despite the successful restructuring of the loans, Ebusco remains dependent on a significant liquidity injection in order to be able to continue as a going concern. If Ebusco is not able to attract the required liquidity injection over time, it could face insolvency“.

As of mid 2025, Ebusco is at a critical juncture in its business. The company has faced significant financial instability over the past few years, with its future uncertain as it works to fulfill key orders and meet production targets. The company is currently implementing a Turnaround Plan that includes the transition to a OED (Original Equipment Designer) company, with outsourced production. “We will not do any assembling in-house after Q1 2025”, stated CEO Christian Schreyer in an interview with Sustainable Bus in late 2024. Since then, the same Christian Schreyer has stepped down from his role in June 2025 due to health reasons.

Ebusco is converting loans into equity

More specifically, Ebusco explains that Heights and Kabuto Technology Co. Ltd. will take over the full loan amounts currently held by ING Bank N.V. and Coöperatieve Rabobank U.A. under the company’s existing letters of credit and bank guarantee facilities. These loans, which total approximately EUR 12.8 million and are due on 14 August 2025, will be transferred to Heights (EUR 4.6 million) and Kabuto (EUR 8.2 million). Following this transfer, Heights and Kabuto will have the option—subject to certain conditions—to convert the loans into Ebusco shares through a debt-for-equity swap.

The conversion price will be either EUR 0.40 per share or a 10% discount to Ebusco’s five-day average share price prior to 19 August 2025, whichever is lower. Additionally, Kabuto has the right to assume Heights’ loan portion before 14 August 2025, under the same conversion terms. If either party chooses not to convert the loans at that time, the loans will instead be amended into convertible loan agreements with the same conversion conditions, maturing on 19 August 2026.

Ebusco is moving forward with a major debt restructuring, converting all loans maturing in August 2025 into equity, subject to shareholder approval on 18 August 2025. In February 2025, the company secured three loans: EUR 10 million from Green Innovation, EUR 2 million from De Engh, and EUR 10 million from Heights. The Heights loan, originally non-convertible, will be made convertible on the same terms. All three lenders have agreed to convert their loans—totaling EUR 22 million plus EUR 2.4 million in interest—into shares on 19 August 2025, at the lower of EUR 0.50 or the share price five business days prior.

Separately, Heights recently converted part of its 2023 convertible bond into 10.77 million shares, bringing its stake to 10.36%. The remaining bond value is EUR 15.4 million, convertible at EUR 0.75 per share. Following this, Ebusco has 81.17 million shares in issue. If all planned conversions proceed, the Heights convertible bond would be Ebusco’s only remaining term debt as of 19 August 2025.

Looking for working capital support

To provide working capital support in the short term, Ebusco states it is expected to agree with one (or more) of its partners in China on (i) a working capital facility of up to EUR 9 million, which is to be made available in tranches that are linked to Ebusco’s bus delivery schedule and (ii) a temporary deferral of EUR 2.0 million in accounts payable.

Together with this same partner(s) Ebusco will continue to explore long-term strategic and financial support, aimed at restoring Ebusco’s financial condition in a structural manner.

The working capital facility is a type of short-term financing that helps businesses manage their day-to-day operations by providing access to funds.

Major contract achieved by Ebusco Energy

Ebusco also announces that it has signed a large energy contract with a European client. The agreement, with Ebusco Energy B.V. as the contracting party, will cover a minimum of 600 MWh of various Energy Storage Systems (ESS) and ESS related equipment, with a total contract value of approximately EUR 39 million. Under the contract, which contains standard market and arm’s length conditions, Ebusco will deliver various ESS Battery packs and other ESS products to this client. This contract fits within Ebusco’s overall strategy to further develop its energy related operations. 

Michel van Maanen (COO and Member of the Board) and Peter Bijvelds (Member of the Board) say: “The agreement on the restructuring of our debt and the signing of a major Ebusco Energy contract mark a key step in strengthening of both our financial position and strategic direction. These developments reflect the confidence of our stakeholders in Ebusco and we are very appreciative of their support to the company. The restructuring of the loans will allow us to fully focus on executing our Turnaround Plan, the strengthening of our liquidity position, the delivery of goods to our clients and completing our transition from OEM to OED.”