Ebusco delays October pay for its 230 employees

Electric bus maker Ebusco has delayed paying October salaries because of acute financial problems. The listed company, based in Deurne in North Brabant, employs 230 people, who will not receive their October pay on time. Ebusco said the delay is a direct result of the short-term funding it has not yet secured.

Ebusco is in talks with a number of shareholders about financing its operating costs in the short term. The negotiations are taking longer than expected. The talks involve the company's largest shareholders but have not yet produced a result, Ebusco said in a statement.

In its statement, Ebusco said it "is forced to postpone the payment of salaries for October, which the company greatly regrets".

Last month Ebusco warned of "material uncertainty about its ability to continue as a going concern" if extra financing did not come soon. The company said its focus is "entirely on safeguarding the continuity of the company, in the interest of its employees, customers, shareholders and other stakeholders".

Cancelled orders and delayed deliveries put the bus maker in financial trouble, and bus production is now almost at a standstill. Ebusco delivered only three buses in the third quarter, bringing its total since the start of the year to nineteen.

The company is also trying to cut costs, including by shrinking its workforce. It had 248 full-time employees at the end of June and 230 at the end of September. Ebusco said it will keep the market informed of relevant developments.