Lordstown Receives Approval of First Day Motions
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.
