EV maker Lordstown Motors received bankruptcy court approval to sell its manufacturing assets to LAS Capital, a limited liability company founded by former Lordstown CEO Stephen Burns. The sale was valued at $10.2 million.
According to Reuters, LAS Capital will receive the automaker's business records, intellectual property and assembly lines for EV batteries and motors, most of which are at an Ohio facility owned by Foxconn. However, LAS Capital attorney Jennifer Madden stated that the company would not purchase for resale any Endurances, Lordstown's electric pickup truck.
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In June, Lordstown initiated Chapter 11 bankruptcy proceedings, and the company's selling entities secured approval from the bankruptcy court for the processes related to asset marketing and sales in August. The selling entities received one qualifying bid and executed a purchase agreement with LAS Capital.
LAS Capital has no affiliation with Lordstown and Burns has not held a management role since 2021. Former Lordstown CFO Julio Rodriguez was also involved in the recent acquisition as an indirect manager of LAS Capital. Rodriguez and Burns resigned after Lordstown's board investigated allegations that company executives lied about $1.4 billion in preorders for the Endurance.
