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LORDSTOWN -- LAS Capital Inc., the company formed by the founder and former CEO of Lordstown Motors Corp., has acquired certain assets of the bankrupt electric-vehicle company, according to a regulatory filing.
The filing with the U.S. Securities and Exchange Commission states the transaction for assets "related to the design, production and sale of electric light duty vehicles focused on the commercial fleet market" closed Friday.
The cash deal was for $10.2 million.
It was approved Oct. 18 by a U.S. bankruptcy court judge in Delaware, and included a closing deadline of today that gave either company the option to terminate the agreement.
Ex-Lordstown Motors Chief Executive Officer Steve Burns and his LAS Capital company submitted the only qualified bid in September for $10 million, but the price was increased $200,000 to resolve, or clarify, differences between the company and Lordstown Motors over assets that were to be included in the purchase agreement.
LAS Capital intends to assign the rights to acquire the assets to its affiliate, LandX Motors Corp., which will be the purchaser in the agreement, according to an SEC filing. urns is majority equity holder in LAS Capital and LandX Holdings Inc., the parent company of LandX Motors Inc.
HEARING TODAY
Meanwhile, a hearing is scheduled for today before Judge Mary F. Walrath on Lordstown Motors' reorganization and disclosure plan, which details how the company will pay its creditors.
Another key date is Nov. 10, the deadline for the SEC to file a complaint or take other action against Lordstown Motors, which has been the subject of an SEC investigation since February 2021.
Also, an adversary lawsuit Lordstown Motors filed against Foxconn claiming fraud remains pending. Court records show Foxconn filed a motion to dismiss the complaint Sept. 29.
Lordstown Motors has until Monday to object to Foxconn's motion, and Foxconn has until Nov. 30 to respond.