Lordstown Motors said it may face bankruptcy protection if its funding deal with Foxconn falls apart. Lordstown manufactures the Endurance electric pickup truck.
A securities filing on May 1 stated that Lordstown had received a letter from Foxconn asserting the company had breached the investment agreement by letting its stock fall below a $1.00 minimum bid price requirement.
If the funding does not come through, Lordstown “will be deprived of critical funding necessary for its operations,” according to the filing.
“If we are unable to resolve our dispute with Foxconn in a timely manner on terms that allow us to continue operating as planned, identify other sources of funding, identify a strategic partner and resolve our significant contingent liabilities, we may need to curtail or cease operations and seek protection by filing a voluntary petition for relief under the bankruptcy code,” the company said in its filing.
Source: Lordstown
