Trevor Milton, the founder and former executive chairman of Nikola Corp, is seeking to purchase the electric truck maker’s assets following its Chapter 11 bankruptcy filing, court documents show. The effort comes shortly after Milton was pardoned by former U.S. President Donald Trump in March, overturning his securities fraud conviction from 2022.
Nikola, which filed for bankruptcy protection in February, announced plans to sell its operations by mid-April. A bid submitted on March 21 by ISSO LLC, a Nevada-based entity, has been linked to Milton, according to filings and a person familiar with the matter. While the company allowed ISSO to conduct a limited inspection of its Coolidge, Arizona facility, it restricted photography, video recording, and access to a specific individual whose description matched Milton.
See also: Nikola Seeks Buyer for Entire Business Amid Bankruptcy Proceedings
Milton founded Nikola in 2014 and led it through a high-profile public listing via a SPAC merger in 2020. He stepped down later that year after allegations of misleading investors, which led to his conviction and prison sentence. His recent pardon has coincided with renewed efforts to re-engage with the company.
Filings show that Nikola opposed Milton’s presence at the factory tour. A lawyer for the company described Milton’s involvement as “nothing more than a publicity stunt” during an emergency court hearing last week. Judge Thomas Horan ruled in favor of the company, stating that it had “justified why that is necessary” to bar Milton from accessing the site.
See also: Nikola Files for Bankruptcy, Seeks Asset Sale Amid Financial Struggles
ISSO LLC’s filings include names of Milton’s father, Lance Milton, and one of his attorneys, Troy Wallin, reinforcing ties between the entity and the former executive. A person familiar with the situation, speaking on condition of anonymity, confirmed Milton’s intent to pursue the acquisition.
The court has scheduled an auction for April 7 at 10:00 a.m. ET to determine the highest and best offer for Nikola’s assets. It remains unclear if other bidders submitted proposals ahead of the April 3 deadline. No further updates had been posted to the bankruptcy docket at the time of reporting.
Source: Techcrunch