The company announced in a regulatory filing last Thursday that it has implemented a Chapter 11 restructuring plan that was recently approved by the Delaware bankruptcy court. This makes it one of the first EV startups to undergo bankruptcy proceedings in one form or another, albeit incredibly. diminished. Electric Last Mile Solutions was liquidated in Chapter 7 proceedings in 2022, while IndiEV’s Chapter 11 proceedings are still taking position in California. Ten years ago, Fisker Automotive and Coda sold to other buyers as part of their Chapter 11 restructurings.
Now known as Nu Ride Inc. , Lordstown Motors’ reconstituted edition will also look at “potential business combinations,” though it did not specify what types of mergers it is seeking. The company doesn’t have much left under its belt. He sold the former General Motors plant once owned by Foxconn; The assets similar to its electric pickup truck were acquired through Lordstown founder Steve Burns.
With the restructuring plan underway, Nu Ride is now led through a new board of directors and a new executive staff. It will now trade on the OTC markets under the name “NRDE”.
The newly appointed company has two federal investigations and other lawsuits that it wants to go beyond its dispute with Foxconn. The Securities and Exchange Commission recently accused the company of misleading investors about the potential good fortune of its defunct electric pickup truck, forcing Lordstown to step aside. $25. 5 million to help resolve some of the outstanding shareholder lawsuits. That investigation is still active, according to the agency, as is that of the U. S. Attorney’s Office for the Southern District of New York.
Lordstown Motors sued Foxconn in June 2023 when it first filed for bankruptcy. He claimed that the Taiwanese conglomerate had misled the startup about its plan to collaborate on a diversity of electric vehicles. The Lordstown trial was more or less suspended while Chapter 11 was enforced. The proceedings continued.
Foxconn now operates the factory that once belonged to Lordstown and even built a few dozen electric pickup trucks from the startup before they had to be recalled. Foxconn’s efforts to become a contract manufacturer of electric cars in the U. S. U. S. companies have failed most often so far. Two of its 4 possible consumers (Lordstown and IndiEV) have filed for bankruptcy, while Fisker (which is reportedly in the process of evaluating its own bankruptcy filing) recently distanced itself from the conglomerate, saying it would prefer to partner with an established automaker. The only thing Foxconn makes at its Ohio plant are tractors for California-based Monarch.