Topics
Latest
AI
Amazon
Image Credits:Nikola
Apps
Biotech & Health
mood
Image Credits:Nikola
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
Fundraising
Gadgets
Gaming
Government & Policy
computer hardware
Layoffs
Media & Entertainment
Meta
Microsoft
concealment
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
consequence
Startup Battlefield
StrictlyVC
Podcasts
TV
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
A judicature earshot on the sales agreement of bankrupt electric hand truck startup Nikola ’s assetsto Lucid Motorswas going swimmingly on Friday . No objections had been filed to the dealing , and Delaware failure evaluator Thomas Horan verbally approved it without hesitation .
Until , that is , a attorney piped up on the Zoom call toward the end of the auditory sense .
The attorney said his client “ has some concern ” about the mode the auction process was turn tail . Those could be plow at a later appointment , he said , but he stressed he did n’t want his client ’s silence to “ be held against us in the time to come . ”
The lawyer was represent ISSO LLC , an entity that Nikola ’s father Trevor Milton has been using to evaluate a bid for his former fellowship ’s assets . As part of that process , he was already barred by Nikola from tour its Arizona factory — a determination that Judge Horanstood by last week .
While the favorable reception of the cut-rate sale to Lucid was breezy , the late appearance by Milton ’s representative was an ominous planetary house that he is not done poking at his former company .
Fresh off apardonfrom President Donald Trump , which helped him avoid serving a four - class prison sentence , it ’s possible that Milton could try on to fight a $ 168 million arbitration awarding he was tell to pay Nikola last yr .
That arbitrement awarding remains a key component of Nikola ’s Chapter 11 bankruptcy case . in the lead of the failure , Nikola was able to settle a class action suit by shareholders related to the false call Milton made while serve as CEO of the company . But it was able to do so by promise to distribute that arbitration laurels to those shareowner .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Nikola also still has some plus it hop to betray keep up the Lucid dealings . Lucid purchased the Coolidge , Arizona , factory and the Phoenix home base term of a contract , plus fabrication equipment . It will also hire 300 or so Nikola employee . But Nikola is still contain on to its armoury of hydrogen - power big rigs and other assorted equipment .
Joshua Morris , a lawyer for Nikola , said in the hearing he was not surprised ISSO and Milton “ would require to essay and corrupt these proceedings . ”
“ This is a pattern of behavior that we ’ve seen over and over , ” Morris said . “ We trust these are baseless assertions . When asked for any evidence or any specificity , none was allow for . We think Your Honor should view these with a jaundiced eye . ”
Morris went on to say that he believes Milton ’s involvement in the sales agreement process looks like “ an attempt to continue to harm the company for a welfare that I ca n’t quite ascertain . ”
He added that Milton may be casting a pall on the sale unconscious process in hopes of impacting that arbitration award .
“ Perhaps the play is to return [ Nikola ] heroic for support cash so that the citizens committee [ of unsecured creditor ] forces the debtor to attempt or take on some low - ball settlement proposal , ” he articulate . “ We just know that we believe we ran the sale process with an receptiveness and involved all parties . ”
The lawyers left things there and let the hearing come up to a conclusion . A spokesperson for Milton did not now respond to a petition for comment .
