Nikola founder Trevor Milton, who was not too long ago pardoned after being convicted of securities fraud, is making an attempt to purchase the property of his former firm out of chapter, based on new court docket filings and an individual acquainted with the matter.
Nikola filed for Chapter 11 chapter safety in February and has mentioned it hopes to promote its enterprise by the center of this month. Milton’s bid was met with a frosty reception — filings present the corporate stopped him from personally inspecting the property at its Coolidge, Arizona manufacturing facility earlier this month, as The Phoenix Enterprise Journal previously reported.
Milton’s curiosity in Nikola is the newest twist within the firm’s lengthy, odd story. Milton based the corporate in 2014, took it public in one of many first high-profile particular function acquisition mergers in 2020, stepped down just a few months later after fraud allegations surfaced, and was convicted in 2022. He was sentenced to 4 years in jail in 2023, and simply final month was pardoned by President Trump.
In the meantime, Nikola struggled with battery fires, recollects, and its general monetary well being earlier than submitting for chapter.
Legal professionals for a Nevada entity often known as ISSO LLC mentioned in a filing final week that it submitted a bid for Nikola property on March 21. As a part of the bid course of, Nikola agreed to let ISSO examine the manufacturing facility. However the firm refused to permit video or photos to be taken and prohibited a selected ISSO consultant from getting into the manufacturing facility.
The identify of that consultant has been redacted within the chapter court docket filings. A lawyer representing Nikola described the individual throughout an emergency listening to final week, and his description fit Milton. Milton’s father, Lance Milton, and one among his legal professionals Troy Wallin seem on paperwork ISSO LLC has filed with varied states over the previous couple of years.
An individual acquainted with Milton’s intentions, who spoke on the situation of anonymity, confirmed to TechCrunch he’s pursuing a bid. A spokesperson for Milton didn’t reply to a request for remark.
Finally week’s listening to, the lawyer for Nikola mentioned Milton’s curiosity was “nothing greater than a publicity stunt.” Choose Thomas Horan mentioned the corporate “justified why that’s essential” to ban Milton from getting into the power. He denied ISSO’s movement to permit Milton to tour the manufacturing facility.
It’s unclear if some other events submitted bids for Nikola’s property forward of the April 3 deadline. On Friday, the court docket revealed it deliberate to carry an public sale to “decide the very best and finest supply” on April 7 at 10:00 a.m. ET. No updates had been posted to the chapter docket on the time this story was revealed.