Lordstown Motors Again Moves Bid Deadline to Buy its Assets
YOUNGSTOWN, Ohio – Lordstown Motors Corp. has once again extended the deadline for bids to purchase the bankrupt electric-vehicle startup’s assets.
In a notice filed Tuesday in U.S. Bankruptcy Court for the District of Delaware, Lordstown Motors said it has pushed the deadline to 5 p.m. Friday, Sept. 22.
The deadline for Lordstown Motors to notify all qualified bidders of the highest or best-qualified bid is now moved to Sept. 26, the notice said.
It is the second extension notice filed by Lordstown Motors.
Initially, U.S. Judge Mary F. Walrath approved a 5 p.m. Sept. 8 deadline for all bids.
However, the company, exercising its right to “modify such dates,” filed a notice Sept. 12 that moved the deadline to Sept. 18.
The notice filed Tuesday allows four extra days for the company to collect additional bids that it hopes are higher or better than any previous offers.
An auction, if needed, would proceed as scheduled at 10:30 a.m. Sept. 27. As of now, a court hearing on the sale remains on track for Oct. 18, with the closing set for Oct. 31.
In earlier court filings, Lordstown Motors said it had received 13 indications of interest that could culminate in assets sales.
“Four [indications of interest] are for the acquisition of all or substantially all the company’s assets. Four others are for a subset of the debtor’s assets. And five are from liquidators who would like to buy some or all the assets either for an upfront cash fee or for a fee and a shared participation in the proceeds from their sale,” stated a declaration by Jeffrey Finger, managing partner at the Jefferies LLC restructuring firm retained by Lordstown Motors.
Jefferies was first retained by Lordstown Motors in September 2021 “to explore all market alternatives.” That process resulted in the sale of its plant, formerly operated by General Motors, to Foxconn “and the intent to form a joint venture with Foxconn,” court papers say.
Less than a year later, in June 2022, Jefferies, Foxconn and Lordstown Motors reached out to 50 potential investors and strategic original equipment manufacturer partners “seeking potential acquirors and/or strategic partners.”
No “actionable indications of interest” were received, Finger said.
Walrath had also set an Aug. 24 deadline for a “stalking horse” bid, which sets a low-base bid for the company’s assets. No stalking horse submitted a bid.
Lordstown Motors filed Chapter 11 bankruptcy June 27 with no debt and $136 million in unencumbered cash.
Copyright 2023 The Business Journal, Youngstown, Ohio.
