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Trevor Milton, Pardoned Nikola Founder, Seeks to Acquire Bankrupt Company’s Assets
Trevor Milton, the founder of electric vehicle company Nikola, recently pardoned after a securities fraud conviction, is reportedly attempting to purchase the assets of his former enterprise as it navigates bankruptcy proceedings. Court documents and sources familiar with the situation indicate Milton’s efforts to re-engage with Nikola, which filed for Chapter 11 bankruptcy protection earlier this year.
Nikola’s Bankruptcy and Milton’s Re-Emergence
Nikola, which declared bankruptcy in February, has publicly stated its aim to sell its business assets by mid-April. However, Milton’s overtures have been met with considerable resistance. Court filings reveal that Nikola denied Milton personal access to inspect assets at its manufacturing facility in Coolidge, Arizona, a detail initially reported by The Phoenix Business Journal.
A Tumultuous History: Milton and Nikola
Milton’s renewed interest in acquiring Nikola marks another chapter in the company’s eventful history. He established Nikola in 2014 and orchestrated its public listing in 2020 through a special purpose acquisition company (SPAC) merger, one of the early high-profile deals of its kind. However, he resigned from his leadership role within months following the emergence of fraud allegations, culminating in a conviction in 2022 and a subsequent prison sentence in 2023. President Trump issued a pardon to Milton last month.
Nikola’s Challenges Leading to Bankruptcy
Prior to its bankruptcy filing, Nikola faced significant operational hurdles, including battery fires, product recalls, and mounting financial difficulties.
ISSO LLC’s Bid and Milton’s Involvement
Legal representatives for ISSO LLC, a Nevada-based entity, disclosed in a recent filing that they submitted a bid for Nikola’s assets on March 21. Initially, Nikola permitted ISSO to conduct a factory inspection as part of the bidding process. Nevertheless, the company imposed restrictions, forbidding video recording or photography and barring a specific ISSO representative from entering the premises.
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Identity of Barred Representative Points to Milton
While the identity of the prohibited representative was redacted in court documents, a Nikola attorney described this individual during an emergency hearing, with the description strongly suggesting Milton. Furthermore, records indicate that Milton’s father, Lance Milton, and his attorney, Troy Wallin, are associated with ISSO LLC through state filings over recent years.
An individual with direct knowledge of Milton’s intentions, who requested anonymity, verified to TechCrunch that Milton is indeed pursuing a bid. A spokesperson for Milton did not respond to requests for comment.
Courtroom Clash and Auction Plans
During the recent hearing, Nikola’s legal counsel characterized Milton’s interest as “merely a publicity stunt.” Judge Thomas Horan concurred, stating the company “justified why that is necessary” to prevent Milton’s factory visit, and subsequently rejected ISSO’s motion to grant Milton access.
Auction to Determine Best Offer
It remains uncertain whether other parties submitted bids before the April 3 deadline. The court announced plans on Friday to conduct an auction on April 7 at 10:00 a.m. ET to “determine the highest and best offer” for Nikola’s assets. As of the time of this report, no updates have been added to the bankruptcy docket.