Enables uninterrupted continuation of business
operations and commitments to stakeholders
LORDSTOWN, Ohio, June 28,
2023 /PRNewswire/ -- Lordstown Motors Corp. (Nasdaq:
RIDE), ("Lordstown" or the
"Company"), today announced that the United States Bankruptcy Court
for the District of Delaware (the
"Court") entered orders (or indicated it would enter orders)
granting approval, on an interim or final basis (as applicable to
the requested relief), of all of the Company's "first day" motions
filed in its chapter 11 cases (the "Chapter 11 Cases") on
June 27, 2023 (the "Petition
Date").
Lordstown continues to operate
with significant unencumbered cash-on-hand. Additionally, the Court
granted interim approval of the Company's first day employee wages
and benefits motion, which enables the Company to continue paying
all employee wages, salaries, and providing benefits – without
interruption. The hearing for final approval of that motion is
scheduled for July 27, 2023 at
9:30 a.m. (Eastern Time). Bankruptcy
courts routinely grant final approval of the relief requested. The
Company can also continue paying suppliers/vendors for all
authorized goods delivered and services rendered after the filing
date of June 27, 2023.
Following today's successful hearing, the Company is prepared to
turn its attention to the expedited marketing and sale process for
its assets, including the Endurance assets, as proposed in the
Company's motion for approval of that process filed on the Petition
Date. The Company is also poised to continue vigorously pursuing
its pending litigation against global technology company Hon Hai
Technology Group (TWSE: 2317; LSE:HHPD) and certain of its
affiliates.
Edward Hightower, CEO &
President of Lordstown, said, "We
are pleased with the Court's approval of our first day motions,
which enable Lordstown to move
forward with the elements of our strategic restructuring process,
and we can now turn toward preparing to initiate our sale process
to maximize the value of Lordstown's assets. I am proud of our team and
look forward to continuing to work alongside them as we move into
this next phase."
Additional information on the Chapter 11 Cases, including access
to court documents and information about the claims process, is
available at kccllc.net/lordstown; by calling the claims call
center at (877) 709-4757 (U.S./Canada) or (424) 236-7235 (International); or
by emailing lordstowninfo@kccllc.com.
Jefferies is acting as financial advisor to the Company, and
White & Case LLP is acting as legal counsel.
About Lordstown Motors Corp.
Lordstown Motors is an electric vehicle ("EV") OEM developing
innovative light duty commercial fleet vehicles, with the Endurance
all electric pickup truck as its first vehicle. Lordstown Motors
has engineering, research and development facilities in
Farmington Hills, Michigan and
Irvine, California. For additional
information visit www.lordstownmotors.com.
Forward-looking Statements
This release includes forward looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by words such as "feel," "believes," expects,"
"estimates," "projects," "intends," "should," "is to be," or the
negative of such terms, or other comparable terminology.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties, which could
cause actual results to differ materially from the forward-looking
statements contained herein due to many factors. With respect to
the matters addressed in this release, those factors include, but
are not limited to the risks and uncertainties regarding our
ability to successfully complete the Chapter 11 Cases filed in the
Bankruptcy Court; our ability to obtain timely approval of the
Bankruptcy Court with respect to motions filed in the Chapter 11
Cases; the adverse impact of the Chapter 11 Cases on our business,
financial condition and results of operations; the outcome of the
litigation against Foxconn, ongoing litigation, the SEC
investigation and any litigation arising out of the Chapter 11
Cases; the impact of the Chapter 11 Cases on the trading price and
volatility of the Company's Class A common stock and the
anticipated delisting of the Company's Class A common stock; our
ability to effect a plan of reorganization or liquidation, or to
negotiate and consummate a sale or other transaction with a third
party; the sufficiency of our cash on hand and ability to obtain
sufficient financing to allow us to conduct our business and
facilitate required actions during, and execute our business plan
following (should we emerge), the bankruptcy proceedings in an
orderly fashion; our ability to comply with terms and conditions of
any financing; our ability to maintain our relationships with our
employees, suppliers, vendors, customers and other third parties;
and the actions and decisions of our stakeholders and other third
parties who have interests in our bankruptcy proceedings that may
be inconsistent with our operational and strategic plans. There can
be no guarantees that we will emerge from bankruptcy protection as
a going concern or be able to sell some or all of our assets in an
orderly fashion, that we will otherwise realize any significant
value for our assets or damages through the litigation against
Foxconn, or that our creditors or stockholders (including holders
of our Class A common stock) will receive any recovery from the
bankruptcy proceedings. As a result, the Company expects that its
currently outstanding shares of Class A common stock may have
little or no value. Trading in shares of our Class A common stock
during the pendency of the Chapter 11 Cases will be highly
speculative and will pose substantial risks and trading prices for
our securities may bear little or no relationship to the actual
recovery, if any, by holders of our securities in bankruptcy
proceedings. Accordingly, the Company urges extreme caution with
respect to existing and future investments in our Class A common
stock.
Additional information on potential factors that could affect
the Company and its forward-looking statements is included in the
Company's Form 10-K, Form 10-Q and subsequent filings with the SEC.
All forward-looking statements are qualified in their entirety by
this cautionary statement. Any forward-looking statements speak
only as of the date on which they are made, and the Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date of this release.
Contacts:
Investors
Adam Kroll
IR@lordstownmotors.com
Media
Jeremy Fielding/Jon Morgan/Simone
Leung
Kekst CNC
lordstown@kekstcnc.com
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SOURCE Lordstown Motors Corp.