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Electric Last Mile Solutions Inc. filed for Chapter 7 bankruptcy in Delaware, making it the first of the electric-vehicle startups that merged with special purpose acquisition companies to go out of business amid the recent market slump.
The company filed for court protection on June 14, listing assets and liabilities of as much as $100 million each.
Chapter 7 bankruptcies allow companies to develop a plan to liquidate assets and repay creditors. Electric Last Mile went public around a year ago, and opted for bankruptcy after a review turned up no better option for shareholders and creditors, according to a June 12 statement.
Founders James Taylor and Jason Luo had planned to import electric delivery vans from China and assemble them at a former General Motors Hummer factory in Mishawaka, Ind. Both men resigned in early February after Electric Last Mile accused them of making improper stock purchases just before the company announced its special purpose acquisition company merger in December 2020.
The Troy, Mich.-based company had said in a statement late June 12 that its board and interim CEO, Shauna McIntyre, decided to liquidate after a review of Electric Last Mile’s products and plans turned up no better option for stockholders, creditors and other interested parties.
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