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Form 8-K
June 27, 2023
https://investor.lordstownmotors.com/node/9261/html
Item 1.03 Bankruptcy or Receivership.
Chapter 11 Filing
On June 27, 2023, Lordstown Motors Corp., a Delaware corporation (the “Company”), and its subsidiaries (collectively, the “Company Parties”) announced a strategic restructuring process to maximize the value of their assets, which include the on-the-road Endurance electric vehicle (EV) pickup truck (the “Endurance”) and the intellectual property, platform and people that developed it.
The process consists of two key steps. First, on June 27, 2023, the Company Parties filed litigation (the “Foxconn Litigation”) against Hon Hai Precision Industry Co., Ltd (a/k/a Hon Hai Technology Group), Foxconn EV Technology, Inc., Foxconn Ventures Pte. Ltd., Foxconn (Far East) Limited, and Foxconn EV System LLC (collectively, “Foxconn”) in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Foxconn Litigation, which is further described under Item 8.01 below, details Foxconn’s fraud, bad faith and willful and consistent failure to live up to its commercial and financial commitments to the Company Parties. Foxconn’s actions led to material damage to the Company Parties as well as their future prospects.
Second, and as a direct consequence of the material and irreparable harm caused by Foxconn, the Company Parties are pursuing a restructuring through a voluntary petition also filed on June 27, 2023 under chapter 11 (“Chapter 11”) of the U.S. Bankruptcy Code (the “Bankruptcy Code”) in the Bankruptcy Court. On such date, the Company Parties filed a motion with the Bankruptcy Court seeking to jointly administer the proceedings under the caption “In re: Lordstown Motors Corp., et al.” (the “Chapter 11 Cases”). The Company further anticipates that the restructuring will enable an expedited timeline for hearing the Foxconn Litigation.
As part of the restructuring, the Company Parties are commencing and pursuing a comprehensive marketing and sale process for the Endurance and related assets to maximize the value of those assets. The Company provides no assurance that it will successfully complete any such dispositions or the pricing and other terms of any such transactions. The Company also intends to use the tools of Chapter 11 to fully, finally, and efficiently resolve its contingent and other liabilities and to pursue the Foxconn Litigation before the Bankruptcy Court.
The Company Parties continue to operate their business as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court; however, development activities with respect to future vehicles have ceased and production of the Endurance will cease in the near term. To minimize the effect of the Chapter 11 Cases on the Company Parties’ customers, suppliers, vendors, and employees, the Company Parties have filed various “first-day” motions with the Bankruptcy Court requesting customary relief, including authority to pay employee wages and benefits, employ bankruptcy professionals, continue to employ ordinary course professionals, maintain their insurance and utility services and to pay vendors and suppliers for goods and services provided both before and after the filing date. The Company enters Chapter 11 with significant cash on hand and is debt-free.
All those write downs-to-be sitting on RIDE’s books.
OPK, thanks, makes sense to me.
The spike seems to have happen the day CEO Hightower visited Sandy Munro with the Endurance truck for a review. My take is that the Endurance is still in play here for production but that is just a wild guess.
Great to see Edward of @LordstownMotors at our open house today pic.twitter.com/hCCXc1z8Cb
— Sandy Munro (@teardowntitan) June 20, 2023
Does anyone know why the recent huge spike in share price, only to go back where it was before? I haven't been able to find any explanation for it.
Maybe Foxconn wanted Steve Burns out completely with the amount of shares he owed and now since the SEC can go after Burns and not have LMC involved? It makes some sense to me but you never know what goes behind the scenes but you can attach the past history of the stock and come up with some scenarios.
The market cap here at around 48 million is a joke. Book value is 3 times the market cap . Either way you win holding thru the shenanigans LMC is going thru with Foxconn as I don’t believe these 2 wants to go to court for 47 million. Also Foxconn could just buy LMC for 238 million and this is in double digits from here. IMO
It's in free fall now, it's obvious they will be going out of business soon.
Well, I guess that answers that question.
Such thin skin!
So what? That only means something to those who own shares.
RIDE is now at an adjusted pps of twenty cents.
BWAHAHAHAHA!!!!
What really gets me is that the SEC has not done a thing to Steve Burns. It goes to show you the level of corruption on both sides the SEC and Wallstreet. It’s anti- American when over 2 years has gone by with no action from the SEC.China will surpass the USA in the next 10 years as the new super power .
I agree and where the Truck is Hightower? Not a Trucking word out of that meatball.
Prime vans are being seen in and around the plant.
That is one point of view. I think it's important to step back and understand what situation the new team inherited however. The stock price when he stepped down was in the middle of the free fall caused by the Hindenburg report exposing all of the promises he made were lies and the company is actually just a shell company. (100k "firm" preorders, in production by September 2021, factory worth $1B as part of their valuation, etc.)
However, I do agree with the point that the new team has been completely ineffective, has not communicated to the Investors appropriately and there has been very little accomplished - not to mention having to recall the ~10 trucks they actually did manage to cobble together.
It really has been a scandal and the losses have been incredible. This is why I feel strongly there should be an investigation by the SEC and it makes sense to me that a Class Action is started against the company and responsible leadership.
Probably having lunch with the loser who set it all up for him. LMMFAO
He’s out waking around a free man while the company is in ashes. It’s not right.
Burns was liquidated by the military. I've been saying
that from the beginning.
CEO Edward Hightower was carefully and strategically planned
10s of thousands of CEO's, Officers and Directors from around the corporate world have been extinguished.
Once revenue begins to be reported. Forward splits will begin over time with pps being evaluated to stabilize price.
He’s out waking around a free man while the company is in ashes. It’s not right.
Foxconn must be thinking now that Steve Burns sold all his shares and sees this as an opportunity?
Steve Burns just sold his remaining shares. The real reason why he sold his stake in LMC ? Avoid BK or the SEC forced him ?
It's NOT ideal for the people who invested at the time of the SPAC, the losses have been absolutely staggering for them. At this time, share price should be $410.00 due to the RS, and a sale to FC would be at what, $3.00?!?!
Yes a complete takeover would be ideal. Foxconn does not want to go to court and drag things out .
they have had a deal for years now so what.
OR are you saying some sort of new deal like a complete take over?
Maybe this runs again to $6.00 then LMC announces deal with Foxconn and then double digits here ? Very possible here . IMO
Well now is Do More and Say Less
https://stocktwits.com/Jeffride/message/532866390
Deal or No Deal with Foxconn. That is the question here .
Last Friday spike to over $6.00 seems very suspicious to me and it’s an indicator of a deal between Foxconn and LMC is on the works. I saw a tweet for Jack the CEO of Foxconn MIH program with Work for it t-shirt from LMC on Father’s Day. This is way undervalued if a deal is in place and will jump to $10.00 if so.Let’s see what happens in the next 30 days . IMO
RIDE..........................https://stockcharts.com/h-sc/ui?s=RIDE&p=W&b=5&g=0&id=p86431144783
I think next week is going to get interesting. Looking to get in maybe
Wow this was up 50% and ended up negative for the day. I hope some of you sold at the top .
On low volume. Get ready!
Scam central banks and crooked Hedge Funds going down.
Crypto and worthless fiat can no longer settle contracts. RestoredRepublic.co
What? I made well over 650k. Bought in at $1.28 and sold at $31
No losses.
Just like this one. One Announcement will break records. Patience
The EU is going to fall with NATO. I know what to hold and what to fold.
I'll keep ya posted. Stay clear of the banks. 10's of thousands are insolvent worldwide but news sources won't say a word until it's too late.
RIDE is being gas lighted. Believe it or not.
By the time Europe finds out what just happened RIDE will be well over $100 and leaping to a $1000 with this minute SS.
Good Luck
This directly says, we are over the target. Invited? Recruited?
You can't keep a good stock down. Shorts preparing to burn like no other. The trap is set.
I was invited over here from the DD board
Right!
I do hope everyone realizes I am merely poking fun at what may appear to be a scam. I couldn’t resist the 7 cent end of day paint job causing an almost 17% paper gain in this “stock”
I believe this to be a huge scam, in my opinion
I was invited over here from the DD board
Hi I am a NEWBie to stocks, I just inherited $105,532,785.42 and wondering if I should invest in this
Any help will be appreciated
R/S-adjusted price…21 cents.
BWAHAHAHA!!!
They must have a deal, going up like this. Now 3.14 while shorting with European Garbage isn't working so hot anymore. LoL
Algorithm trading taking a beating.
Short selling banks are collapsing. Their demise awaits them.
HONG KONG -- An exodus of Chinese millionaires is expected to continue this year, according to a new report by investment migration consultancy Henley & Partners, as the economy slows and the government tightens political controls.
China is expected to see a net outflow of 13,500 high net worth individuals this year, extending the loss of millionaires in the past decade, according to the Henley Private Wealth Migration Report.
While the country is estimated to have 823,800 millionaires, the emigration trend could see millions of dollars brought with those leaving, which could worsen China's sharp economic slowdown. Henley defines high net worth individuals as people with more than $1 million in investable wealth.
"General wealth growth in China has been slowing over the past few years, which means that the recent outflows could be more damaging than usual," said Andrew Amoils, head of research at New World Wealth. "China's economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then."
Globally, 122,000 rich individuals are forecast to migrate this year, topping the record high in 2019, according to Henley -- which derived its forecasts from inquiries and data for the first six months of the year.
Emigration enquiries from East Asian clients skyrocketed after pandemic restrictions were abolished at the beginning of this year, exceeding the 2019 peak figure by 15%.
"There are those who wish to improve their mobility with greater visa-free access to key regions, or secure better access to health care, or enjoy greater political stability," said Denise Ng, director of Henley & Partners Hong Kong.
Chinese President Xi Jinping cemented a third term and has recently cracked down on private businesses with a series of raids on consulting companies, while tightening the government's leash on the tech and financial industries. Bao Fan, founder of investment bank China Renaissance Holdings, mysteriously disappeared in February before his company announced he was assisting in an official investigation.
Singapore has emerged as a hot spot for Chinese money since the government in Beijing imposed draconian coronavirus measures that isolated the country for nearly three years and accelerated emigration of the super rich last year. The inflow of wealth into the city-state has fueled increases in house prices and other costs of living. Around 10,800 millionaires emigrated in 2022, Henley & Partners said.
Hong Kong is also expected to see 1,000 millionaires emigrating this year, which could hamper efforts by the city's government to lure the wealthy and turn the financial center into a wealth management and family office hub.
Ng said more high net worth individuals from northern Asia are seeking to move to Europe, while fewer are looking to move elsewhere in Asia, with applications for Asian migration programs dropping 20%.
Overall demand has soared with a record number of investment migration program enquiries in the first quarter, the investment migration consultancy said.
Although wealthy individuals have historically tended not to move to countries where they acquire residence rights or citizenship, there has been a shift to relocating their families amid "recent and persistent turmoil," the report notes.
The number of millionaires expected to exit India, which overtook China to become the world's most populous nation earlier this year, came second globally. But the predicted net outflow for 2023 was lower, at 6,500, compared with last year, due to growing numbers of new rich.
Australia is expected to attract the biggest net inflow of high net worth individuals this year at 5,200, while Singapore is forecast to receive a record-high net inflow of 3,200 wealthy individuals, according to the report.
https://asia.nikkei.com/Economy/China-millionaire-exodus-to-continue-this-year-report?del_type=1&pub_date=20230613190000&seq_num=9&si=6d3a4a7d-2764-406e-9c46-4aa2cd7bf3b8
Production of what?
John Wayne sure had it right when he said you can't save stupid.
It's all a head fake. Plant is operational and has been. Boots on the Ground are busy with production.
RIDE is being gas lighted.
Blackrock, Vanguard, State Street, Rothchild's and Rockefeller's are going down and are in a serious mess. RIDE will have last laugh.
$ride is officially garbage. It is suing itself.
That takes you on the road to nowhere really quick. Down she goes. IMO
Nu Ride's new five-person board is expected to appoint William Gallagher, managing director of M3 Partners — a transaction advisory firm in New York — as Nu Ride's president and CEO, according to the regulatory filing.
Gallagher faced a situation similar to Nu Ride as CEO at WMIH Corp., the public acquisition corporation that succeeded Washington Mutual Inc. — the parent of WaMu Bank in Seattle that was seized by federal thrift regulators in fall 2008. By January 2015, the shell company left over from the failure of Washington Mutual had raised close to $600 million to pursue acquisitions of financial companies that could benefit from its huge, tax-deductible losses, according to a report by the Seattle Times.
Gallagher took over as leader of WMIH in May 2015 "to oversee its acquisition strategy and manage its day-to-day affairs," according to M3 Partners.
He was responsible for "reviewing, vetting and analyzing a large number of potential target companies from a variety of different sectors and industry groups," M3 says.
"Ultimately, WMIH acquired Nationstar Mortgage Holdings to form Mr. Cooper Group," M3 says. Gallagher departed from WMIH after closing the Nationstar acquisition in July 2018.
Bill Gallagher has more than 35 years of experience in finance, investment and financial restructurings. He brings deep expertise in credit analysis and has long-term management experience in the financial services industry.
Prior to joining M3, Bill was the Chief Executive Officer at WMIH Corp (NASDAQ:WMIH), a public acquisition corporation which was the successor to Washington Mutual, Inc., from May 2015 to July 2018. Bill was recruited to WMIH to oversee its acquisition strategy and manage its day-to-day affairs. While there, he worked closely with WMIH’s strategic financial partner, Kohlberg Kravis Roberts & Co. At WMIH, Bill’s responsibilities included reviewing, vetting and analyzing a large number of potential target companies from a variety of different sectors and industry groups. Ultimately, WMIH acquired Nationstar Mortgage Holdings (NYSE symbol NSM) to form Mr. Cooper Group (NASDAQ:COOP). Bill departed from WMIH upon the closing of the acquisition of Nationstar as his job at WMIH was completed.
Prior to WMIH, Bill was CEO and Chief Risk Officer at Capmark Financial Group, formerly known as GMAC Commercial Mortgage (from March 2009 to May 2015). Bill was retained by Capmark to manage its financial restructuring following the global economic crisis and was responsible for the management of the company’s day-to-day affairs, the restructuring of both the company and its assets (including its $15 billion commercial loan portfolio), its bankruptcy process, and its winding down and distribution of assets to creditors and other stakeholders. Capmark was a highly successful restructuring as Bill and his colleagues significantly increased the recovery value to Capmark’s creditors.
Before joining Capmark, Bill was the Chief Credit Officer of RBS Greenwich Capital, the US fixed income investment banking business of the Royal Bank of Scotland, where he was responsible for all aspects of credit risk management. While at RBS Greenwich, Bill was responsible for a wide variety of US corporations and buy-side companies, including corporate borrowers and debt issuers, financial institutions, industrial companies with captive finance businesses, and a variety of US corporations who traded various securities with or through RBS Greenwich.
Earlier in his career, Bill was a Vice President at First Boston Corporation in that firm’s credit risk management department. At First Boston, Bill was responsible for managing credit risk to a wide variety of corporate issuers and financial institutions. Bill began his career at Chemical Bank, where he completed the bank’s credit training program and then worked as a loan officer in the middle market division and a credit officer in the financial institutions division.
Bill has a B.S. in business administration from Syracuse University and an MBA from New York University.
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