A court hearing on the sale of bankrupt electric truck startup Nikola’s assets to Lucid Motors took an unexpected turn on Friday, as a late objection was raised by a lawyer representing Trevor Milton’s entity, ISSO LLC.
While Delaware bankruptcy judge Thomas Horan had initially approved the sale without any objections, the lawyer signaled concerns regarding the auction process, suggesting that these issues might be addressed at a later date.
See also: Lucid Acquires Nikola Facilities in Arizona, Plans to Hire Over 300 Former Employees
The lawyer emphasized that his client’s silence during the hearing should not be used against them in the future. Milton, who has been barred by Nikola from touring its Arizona factory, has been attempting to evaluate a bid for Nikola’s assets. This intervention added an unexpected layer of complexity to what had appeared to be a straightforward transaction.
Joshua Morris, a lawyer for Nikola, dismissed the concerns raised by Milton’s representative, labeling them as baseless. “This is a pattern of behavior that we’ve seen over and over,” Morris said. “We believe these are baseless assertions. When asked for any evidence or any specificity, none was provided.” He also suggested that Milton’s actions appeared to be motivated by a desire to influence a $168 million arbitration award that remains a significant component of Nikola’s Chapter 11 bankruptcy case.
See also: Nikola Founder Milton Seeks to Acquire Company Assets Amid Bankruptcy Sale
Lucid Motors, which had already purchased Nikola’s Coolidge, Arizona, factory, Phoenix headquarters lease, and manufacturing equipment, is also set to hire approximately 300 Nikola employees.
However, Nikola still retains its inventory of hydrogen-powered trucks and other assets, which may be sold in the future. The bankruptcy proceedings remain ongoing, with the sale to Lucid and the arbitration award remaining key aspects of the case.
Source: Techcrunch