Electric Last Mile Solutions Inc. EV-Truck Startup filed for Chapter 7 bankruptcy in Delaware, becoming the first of the electric-vehicle startups that merged with special-purpose acquisition businesses to fail in the wake of the current market downturn.
On Tuesday, the firm filed for judicial protection, stating assets and liabilities totaling up to $100 million.
Companies can use Chapter 7 bankruptcy to design a plan to sell assets and repay creditors. According to a June 12 announcement, Electric Last Mile went public about a year ago and chose bankruptcy after an assessment revealed no better choice for creditors and shareholders.
Creators James Taylor and Jason Luo intended to import electric delivery vans from China and construct them in a disused GM Hummer facility in Mishawaka, Indiana. Electric Last Mile accused both individuals of making unethical stock acquisitions right before the business revealed its special purpose acquisition company merger in December 2020, prompting their resignations in early February.
This is a case of Electric Last Mile Inc., 22-10538, United States Bankruptcy Court for the District of Delaware.
