Lordstown Motors receives approval of first day motions

Lordstown Motors (RIDE) announced that the United States Bankruptcy Court for the District of Delaware entered orders granting approval, on an interim or final basis, of all of the company’s “first day” motions filed in its chapter 11 cases on June 27. Lordstown continues to operate with significant unencumbered cash-on-hand. Additionally, the court granted interim approval of the company’s first day employee wages and benefits motion, which enables the company to continue paying all employee wages, salaries, and providing benefits – without interruption. The hearing for final approval of that motion is scheduled for July 27. Bankruptcy courts routinely grant final approval of the relief requested. The company can also continue paying suppliers/vendors for all authorized goods delivered and services rendered after the filing date of June 27. Following the hearing, the company is prepared to turn its attention to the expedited marketing and sale process for its assets, including the Endurance assets, as proposed in the company’s motion for approval of that process filed on the petition date. The company is also poised to continue vigorously pursuing its pending litigation against global technology company Hon Hai Technology Group (HNHPF) and certain of its affiliates.