The startup behind the aspirational Hyperloop tunnel project in Northern Italy has struggled to pay employee salaries and rent this year, documents show | Fortune

"In a letter to shareholders sent at the end of January, HyperloopTT CEO Andrés de León warned that the company was running dangerously low on cash, putting its plans to design a hyperloop prototype in Northern Italy in jeopardy. In the letter, which was obtained by Fortune, De León pleads for an extra $5 million so the company can pay back senior debt, cover operational expenses, and pay employees who had apparently been working without pay for months."

""We urgently need funding to reach our goals and protect the value we've created over the last decade," De León wrote in the letter. "We have endured months without being paid, and the company still owes several months of back salary," he added, pointing out that C-Suite executives and employees have reduced their salaries by 10-25% in a deferment program to keep the company afloat."

"De León said in the letter that HyperloopTT had until Feb. 28 to pay back $1 million it had borrowed from one of its investors in the form of senior secured debt, or risk forfeiting all of the company's assets to the investor. It's unclear whether HyperloopTT was able to raise this capital and pay back the investor before this deadline or not."

"HyperloopTT would only share with Fortune that "we have the support of our shareholders" and that its &q"

Hyperloop projects inspired by high-speed vacuum transit have struggled to become real. Hyperloop One shut down after nearly 10 years. Hyperloop Transportation Technologies also faces severe financial pressure. A shareholder letter from the CEO warns that cash is running dangerously low and that designing a hyperloop prototype in Northern Italy could be jeopardized. The CEO requests an additional $5 million to repay senior debt, cover operating expenses, and address months of unpaid employee wages. The company must repay $1 million by February 28 or risk forfeiting all assets to an investor. The company states it has shareholder support but provides limited additional details.

Read at Fortune