Bankruptcy judge strikes down Foxconn request to block Lordstown Motors Chapter 11 filing
The bankruptcy judge hearing the Lordstown Motors Corp case rejected Foxconn parent company Hon Hai Technology Group's motion to remove the Chapter 11 reorganization motion as the troubled electric truck manufacturer looks for someone to buy the business.
In Judge Mary Walrath's US Bankruptcy in Wilmington, Delaware, Monday, the decision was "in the best interests of creditors, the estates, and all parties in interest; and the Court having determined that the legal and factual bases set forth in the Motion..." according to the court documents.
One week ago, the CEO of Lordstown Motors Corp., Edward Hightower, submitted a declaration in objection to the Foxconn request, blaming the lack of "large infusion of capital" that he alleged Foxconn had committed to provide, which hampered the new business plan the company wanted to implement.
Lordstown Motors was building the EV Endurance truck in the former GM Lordstown facility.
Lordstown Motors has a Chapter 11 hearing set in Delaware on Thursday at 2 pm.