Lordstown hopeful to find buyer for all or some parts of business - Bloomberg News

Nu Ride

29/08/2023 02:21

Aug 28 (Reuters) - Lordstown Motors is formulating a
debt repayment plan and is hopeful that it will find buyers in
Chapter 11 for all or parts of its business, Bloomberg News
reported, citing the electric truck manufacturer's attorney
Thomas Lauria. 
    The company filed for bankruptcy protection in June and put
itself up for sale after failing to resolve a dispute over a
promised investment from Taiwan's Foxconn  2354.TW .
    "We expect to have one-or-more purchasers," Lauria told
Bloomberg. 
    A U.S. judge on Monday ruled out Foxconn's bid to curtail
Lordstown's efforts at seeking bankruptcy protection in the
U.S., marking a shot in the arm for the troubled EV manufacturer
embroiled in legal disputes.
    Judge Mary Walrath refused to dismiss Lordstown's bankruptcy
petition. Foxconn, formally called Hon Hai Precision Industry
 2317.TW  and best known for assembling Apple's (AAPL.O)
iPhones, has said Lordstown breached the investment agreement
when the automaker's stock price fell below $1.
    Several investor groups have also brought claims against
Lordstown, alleging that the Lordstown misled consumers and
investors. 
    The U.S. Securities and Exchange Commission (SEC) is
investigating those claims as well, and is engaged in
confidential settlement talks with the regulator, Lordstown's
attorney Thomas Lauria had said in a court hearing in June.
    Lordstown and Foxconn did not immediately respond to 
Reuters' request for comment on the ruling. 

 (Reporting by Kanjyik Ghosh and Jahnavi Nidumolu in Bengaluru;
Editing by Rashmi Aich)
 ((Kanjyik.Ghosh@thomsonreuters.com;))