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ARTICLE · 25 OCTOBER 2022

What We're Reading This Week [October 21, 2022]

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On October 19th, the Wall Street Journal reported that the electric vehicle startup Mullen Automotive Inc., gained court approval to buy an Indiana manufacturing plant and assets...

United StatesInsolvency/Bankruptcy/Re-Structuring
Danielle A. Corn
Danielle A. Corn
Aaron Gavant
Aaron Gavant
Sean Scott
Sean Scott
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On October 19th, the Wall Street Journal reported that the electric vehicle startup Mullen Automotive Inc., gained court approval to buy an Indiana manufacturing plant and assets from Electric Last Mile Solutions for $92 million. Such deal, which boosted Mullen's share prices by 64%, includes Electric Last Mile Solutions' manufacturing plant in Mishawaka, Indiana and its inventory and intellectual property. Mullen is paying $55 million in cash and assuming roughly $37 million in contractual liabilities. Electric Last Mile Solutions had filed for bankruptcy in the District of Delaware in June, 2022 due to ongoing investigations by the Securities and Exchange Commission, after merging with a special-purpose acquisition company last year.

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