News 
Market Data 
Discover
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Lordstown Receives Approval of First Day Motions
Enables uninterrupted continuation of business operations and commitments to stakeholders
LORDSTOWN, Ohio, June 28, 2023 /PRNewswire/ -- Lordstown Motors Corp. (Nasdaq: RIDE), ("Lordstown" or the "Company"), today announced that the United States Bankruptcy Court for the District of Delaware (the "Court") entered orders (or indicated it would enter orders) granting approval, on an interim or final basis (as applicable to the requested relief), of all of the Company's "first day" motions filed in its chapter 11 cases (the "Chapter 11 Cases") on June 27, 2023 (the "Petition Date").
Lordstown continues to operate with significant unencumbered cash-on-hand. Additionally, the Court granted interim approval of the Company's first day employee wages and benefits motion, which enables the Company to continue paying all employee wages, salaries, and providing benefits – without interruption. The hearing for final approval of that motion is scheduled for July 27, 2023 at 9:30 a.m. (Eastern Time). Bankruptcy courts routinely grant final approval of the relief requested. The Company can also continue paying suppliers/vendors for all authorized goods delivered and services rendered after the filing date of June 27, 2023.
Following today's successful hearing, the Company is prepared to turn its attention to the expedited marketing and sale process for its assets, including the Endurance assets, as proposed in the Company's motion for approval of that process filed on the Petition Date. The Company is also poised to continue vigorously pursuing its pending litigation against global technology company Hon Hai Technology Group (TWSE: 2317; LSE:HHPD) and certain of its affiliates.
Edward Hightower, CEO & President of Lordstown, said, "We are pleased with the Court's approval of our first day motions, which enable Lordstown to move forward with the elements of our strategic restructuring process, and we can now turn toward preparing to initiate our sale process to maximize the value of Lordstown's assets. I am proud of our team and look forward to continuing to work alongside them as we move into this next phase."
Additional information on the Chapter 11 Cases, including access to court documents and information about the claims process, is available at?kccllc.net/lordstown; by calling the claims call center at (877) 709-4757 (U.S./Canada) or (424) 236-7235 (International); or by emailing lordstowninfo@kccllc.com.
Jefferies is acting as financial advisor to the Company, and White & Case LLP is acting as legal counsel.
https://ih.advfn.com/stock-market/NASDAQ/lordstown-motors-RIDE/stock-news/91456477/lordstown-receives-approval-of-first-day-motions
To ensure a smooth transition into Chapter 11, the Company filed with the Court a series of customary "first day" motions to continue operating the business and uphold its commitments to stakeholders during the process. The Company expects to receive approval of these routine "first day" requests in short order. The Company enters Chapter 11 with significant cash on hand and is debt-free.
Mr. Hightower said, "We remain confident that an orderly, expedited sale process will maximize value for our stakeholders and enable the talent and technology behind the Endurance to find new and supportive ownership. While in Chapter 11, Lordstown will continue to support our customers. We are grateful for the Lordstown team for their commitment and dedication to our vision and to our customers, suppliers and business partners for believing in the Endurance and in the EV evolution."
Restructuring Process Here's the goods.
Files Complaint Against Foxconn that Details Fraud, Bad Faith and Repeated Contractual Breaches Leading to Value Destruction
Commences Comprehensive Sale Process for Endurance Truck and Related EV Assets
Files Chapter 11 to Implement Restructuring in Efficient Manner
Company is Debt-Free and Continues to Operate with Significant Cash-on-Hand
LORDSTOWN, Ohio, June 27, 2023 /PRNewswire/ -- Lordstown Motors Corp. (Nasdaq: RIDE), ("Lordstown" or the "Company"), an original equipment manufacturer (OEM) of electric light-duty vehicles focused on the commercial fleet market, today announced a strategic restructuring process to maximize the value of its assets: its on-the-road Endurance all-electric (EV) pickup truck and the intellectual property, platform and people that developed it.
As part of the process, Lordstown today filed litigation against global technology company Hon Hai Technology Group (TWSE: 2317; LSE:HHPD) and certain of its affiliates, including Foxconn Ventures Pte. Ltd. (collectively, "Foxconn"), in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The litigation details Foxconn's fraud and willful and consistent failure to live up to its commercial and financial commitments to the Company. Foxconn's actions led to material damage to the Company as well as its future prospects.
In addition, and as a consequence of Foxconn's material and irreparable harm, Lordstown is commencing a comprehensive marketing and sale process for the Endurance vehicle and related assets. To accomplish this expeditiously and provide a prospective buyer with a going concern asset that is free and clear of any legacy issues, Lordstown is restructuring under Chapter 11 of the U.S. Bankruptcy Code ("Chapter 11") in the Bankruptcy Court. Lordstown further anticipates that the restructuring will enable an expedited timeline for hearing Lordstown's litigation against Foxconn.
Edward Hightower, CEO & President of Lordstown, said, "As one of the early entrants to the EV industry, we have delivered the Endurance, an innovative and highly-capable EV with significant commercial and retail potential – and had subsequently engaged with Foxconn in a purposeful, strategic partnership to leverage this expertise into a broader EV development platform. Despite our best efforts and earnest commitment to the partnership, Foxconn willfully and repeatedly failed to execute on the agreed-upon strategy, leaving us with Chapter 11 as the only viable option to maximize the value of Lordstown's assets for the benefit of our stakeholders. We will vigorously pursue our litigation claims against Foxconn accordingly."
Foxconn's Fraud, Bad Faith and Repeated Contractual Breaches Irreparably Harm Lordstown According to Complaint
The complaint filed against Foxconn centers on a transformative, strategic partnership Lordstown's management team entered into with Foxconn to combine Lordstown's innovation, technology, accomplished vehicle engineering team and manufacturing facility in Lordstown, Ohio with Foxconn's resources, supply chain capabilities and position as one of the world's largest electronics manufacturers with stated significant automotive capabilities to form a new, scalable joint vehicle development platform.
Under the partnership, Lordstown agreed to divest its most valuable assets to Foxconn, namely its Lordstown, Ohio manufacturing facility, which is one of the largest in North America, along with its highly talented and experienced manufacturing and operational employees. The up-front purchase price for the Lordstown manufacturing facility reflected the expected benefits of the contractual assurances from Foxconn that Foxconn would support the Endurance pickup truck in a variety of ways and follow through on a joint vehicle development program, leveraging what was purported to be Foxconn's established and extensive EV ecosystem and meeting its commitments to the Lordstown community.
The lawsuit details the fact that Foxconn had no intention of living up to its commitments, particularly with respect to the new vehicle development platform. As the lawsuit describes, Foxconn simply used its variety of contractual arrangements with the Company as a tool to maliciously and in bad faith destroy Lordstown's business—while leveraging resources gained through the partnership to advance its own business interests.
Chapter 11 to Maximize Value of Lordstown's Assets
In addition to the decisive action Lordstown is taking to redress Foxconn's tortious conduct, it seeks to maximize the value of the Company's assets and efficiently resolve its contingent liabilities through a Chapter 11 restructuring process. Lordstown has filed motions with the Court seeking authority to commence a comprehensive marketing and sale process under section 363 of the U.S. Bankruptcy Code to realize the full value of its innovative Endurance vehicle and related assets. The Endurance is a fully homologated and certified, production-launched vehicle that can serve as a springboard for the right OEM or other strategic purchaser into the broader North American EV full-size truck market at a fraction of the cost and time it would take to develop a program from the ground-up. The Company is confident that a buyer could utilize the Endurance platform to create multiple EV variants and take the product to the next level.
To ensure a smooth transition into Chapter 11, the Company filed with the Court a series of customary "first day" motions to continue operating the business and uphold its commitments to stakeholders during the process. The Company expects to receive approval of these routine "first day" requests in short order. The Company enters Chapter 11 with significant cash on hand and is debt-free.
Mr. Hightower said, "We remain confident that an orderly, expedited sale process will maximize value for our stakeholders and enable the talent and technology behind the Endurance to find new and supportive ownership. While in Chapter 11, Lordstown will continue to support our customers. We are grateful for the Lordstown team for their commitment and dedication to our vision and to our customers, suppliers and business partners for believing in the Endurance and in the EV evolution."
Additional information on the Chapter 11 filing, including access to court documents, is available at www.kccllc.net/lordstown.
Jefferies is acting as financial advisor to the Company, and White & Case LLP is acting as legal counsel.
https://ih.advfn.com/stock-market/NASDAQ/lordstown-motors-RIDE/stock-news/91432042/lordstown-motors-announces-strategic-restructuring
Lordstown sold the plant to Foxconn already that went south
and why Foxconn was sued. The next sale will be to a new
partner and not liquidation.
Foxconn will not be able to produce the Fisker Pear in the
Lordstown plant without Lordstown Motors who currently owns
the plant, employees, and is paying the bills.
Lordstown Motors is calling the shots and is not banktupt.
Lordstown has 13 offers on the table for a new partnership.
The dip shit spreading FUD is only here for "entertainment"
like his profile suggests and why I have the loser on ignore
as the twit knows nothing about nothing
It's really awful to see this happening and to realize so much money has been lost. This will take years, if ever, to recover from. Steven Burns said there were 100k "firm preorders", he said they would be in production by September, 2021, he said the factory building was a $1B asset. NONE of those things are true, and in fact, the preorders appear to have been a complete lie. All of his actions were fraudulent, lives are ruined by this, and he is walking free.
This is not the way it should work in America.
Lordstown Motors seeking potential acquirers and/or strategic partners.
Lordstown Motors filed Chapter 11 bankruptcy protection June 27 with no debt and $136 million in unencumbered cash.
Lordstown Motors reached out to 50 potential investors and strategic original equipment manufacturer partners “seeking potential acquirors and/or strategic partners.”
Lordstown Motors filed Chapter 11 bankruptcy protection June 27 with no debt and $136 million in unencumbered cash.
Short selling shares are dried up and ends today.
Rothchild Banks and Hedge Fund manipulation is over.
Broker Dealers are finding out the hard way how the new QFS operates.
You can no longer sell what you don't own, come next week. Margin Calls coming.
Look how they undercut the ask with tiny amounts. It's over!
Watch how bad they burn next week and into the future.
Like they did with Foxconn that went south.
LMC through the courts, got all the assets back from breach of contract.
Lordstown Motors then got the Plant and Employees back
and even produced 80 Endurance Trucks since then.
It's in the filings. dip shit. FUD Is back on ignore.
Mr. Hightower said, "We remain confident that an orderly, expedited sale process will maximize value for our stakeholders and enable the talent and technology behind the Endurance to find new and supportive ownership. While in Chapter 11, Lordstown will continue to support our customers. We are grateful for the Lordstown team for their commitment and dedication to our vision and to our customers, suppliers and business partners for believing in the Endurance and in the EV evolution."
Lordstown Motors Announces Strategic Restructuring Process
Foxconn's Fraud, Bad Faith and Repeated Contractual Breaches Irreparably Harm Lordstown According to Complaint
The complaint filed against Foxconn centers on a transformative, strategic partnership Lordstown's management team entered into with Foxconn to combine Lordstown's innovation, technology, accomplished vehicle engineering team and manufacturing facility in Lordstown, Ohio with Foxconn's resources, supply chain capabilities and position as one of the world's largest electronics manufacturers with stated significant automotive capabilities to form a new, scalable joint vehicle development platform.
Under the partnership, Lordstown agreed to divest its most valuable assets to Foxconn, namely its Lordstown, Ohio manufacturing facility, which is one of the largest in North America, along with its highly talented and experienced manufacturing and operational employees. The up-front purchase price for the Lordstown manufacturing facility reflected the expected benefits of the contractual assurances from Foxconn that Foxconn would support the Endurance pickup truck in a variety of ways and follow through on a joint vehicle development program, leveraging what was purported to be Foxconn's established and extensive EV ecosystem and meeting its commitments to the Lordstown community.
The lawsuit details the fact that Foxconn had no intention of living up to its commitments, particularly with respect to the new vehicle development platform. As the lawsuit describes, Foxconn simply used its variety of contractual arrangements with the Company as a tool to maliciously and in bad faith destroy Lordstown's business—while leveraging resources gained through the partnership to advance its own business interests.
Chapter 11 to Maximize Value of Lordstown's Assets
No shit, like they did with Foxconn dipshit.
Knowledge is power.
No it's not. Foxconn will be replaced with a new buyer just like Foxconn was a buyer who didn't fulfill it's agreement short term.
There is NO liquidation and Foxconn still has plans with Fisker to produce the Pear at the plant.
Lordstown doubled it's production last quarter from 40 to 80 Endurance Trucks and is still in operation and production.
I believe Foxconn will still try to work out a plan as Lordstown continued to produce without Foxconn and Foxconn has the most to lose with Fisker on the back burner.
Lordstown Motors will prevail in the Lawsuit against Foxconn for fraud and planned sabotage with a parts supplier from Taiwan, causing LMC two self proclaimed recalls.
This isn't over and LMC can very well end up with Foxconn's assets when it's said and done. LMC currently operates the plant and pays the bills without Foxconn.
Nobody is liquidating and LMC didn't liquidate when they first sold the plant to Foxconn. Foxconn went south on the agreement, not LMC.
It's all in the filings for crying out loud. SMH
A “going concern” is an accounting term used to describe a business that is expected to remain in operation.
Sep 20, 2023 Lordstown Motors delays bid deadline.
LORDSTOWN — For the second time in seven days, Lordstown Motors Corp. on Tuesday extended the deadline for interested parties to bid on the troubled electric-vehicle company’s assets.
The notice filed in U.S. bankruptcy court in Delaware pushes the bid deadline back four days to 5 p.m. Friday.
A previous notice, filed Sept. 12, extended the bid deadline to Monday from Sept. 8, the original bid deadline approved in August by Judge Mary F. Walrath, who is overseeing the Chapter 11 bankruptcy proceeding.
Moving the bid deadline also modifies when Lordstown Motors is required to let all qualified bidders know on the highest or otherwise best qualified bid to Sept. 26. The previous deadline was Sept. 12.
The company is allowed to modify dates in its schedule of bidding and auction procedures under the same August judge’s order.
On Aug. 3, Thomas E. Lauria, an attorney with White & Case LLP, the lead firm representing Lordstown Motors, said 13 parties showed an interest in acquiring all or some of the company’s assets.
Four were to acquire all or most of Lordstown Motors’ assets as a going concern; four were for different components of the company’s assets; and five were from liquidators interested in buying some or all of the assets for either an upfront cash fee or for a fee and shared participation in proceeds of their sale, he said.
“I will tell the court that some of these proposals have big issues and problems, and some are more promising,” Lauria said.
A “going concern” is an accounting term used to describe a business that is expected to remain in operation.
Tuesday’s motion does not address other important dates, including an auction, if needed, a sale hearing or sale closing. The previous notice set an auction for Sept. 27; the sale hearing for Oct. 18; and sale closing for Oct. 31.
A key date that has passed was Aug. 24, the deadline for a stalking horse bidder to come forward. None did.
A stalking horse bid is the initial bid for a company’s assets. The stalking horse bidder sets the low end of the purchase price.
Lordstown Motors filed for Chapter 11 protection June 27. The same day, it sued former business partner Foxconn, claiming fraud and bad faith by the Taiwanese technology and electronics giant led to the bankruptcy.
Foxconn called the depiction that Lordstown Motors is the victim of a fraud a “fictitious narrative” Lordstown Motors created “solely for the purpose of obtaining a tactical litigation advantage,” a court document states.
Foxconn then asked Walrath to either dismiss the Chapter 11 case or convert it to Chapter 11. Walrath on Aug. 28 dismissed Foxconn’s request and allowed Lordstown Motors to proceed in Chapter 11.
Foxconn acquired its auto assembly facility in Lordstown from Lordstown Motors for $230 million in May 2022. The purchase agreement also called for the two to partner to develop electric-vehicle programs, but that was later changed to a $170 million equity investment agreement.
The companies closed on $52.7 million of the $170 million in November, but that was all. In April, Lordstown Motors received a delisting notice from Nasdaq that stated the company’s stock had fallen below the minimum bid price requirement of $1 per share for 30 consecutive trading days.
That triggered a letter from Foxconn stating it believed Lordstown Motors, because of the notification from Nasdaq, had breached the investment agreement.
Foxconn then told Lordstown Motors it wouldn’t close on a second $47.3 million stock purchase included in the agreement because of the breach. Lordstown Motors then sued.
Lordstown Motors will win Lawsuit against Foxconn
