Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 22 (Xinhua) Hon Hai Group has urged the US court to reject the bankruptcy application of electric car maker Lordstown Motors, alleging that the former business partner filed for bankruptcy with "malice" but had no hope of successful restructuring, Bloomberg reported.

▲ source: Lordstown Motors official website Hon Hai told the US bankruptcy court on July 20 that Lordstown's bankruptcy reorganization application under Chapter 11 of the US bankruptcy Law last month should be rejected or liquidated under Chapter 7 of the bankruptcy Law instead.

CTOnews.com previously reported that Lordstown, based in Ohio, filed for bankruptcy in late June and blamed Hon Hai's failure to keep its electric car production agreement and financial commitments, thus suing Hon Hai for breach of contract while filing for bankruptcy.

Hon Hai told the court on the 20th that it was clear that Lordstown waited until it was ready to sue before filing for bankruptcy reorganization. Hon Hai pointed out that Lordstown was already faced with possible shareholder lawsuits and patent infringement lawsuits and had determined that it was "basically impossible to profit from producing and selling the only product, so it had to close its operations".

Hon Hai also stressed that the chances of Lordstown continuing to operate through bankruptcy restructuring were slim because the company had been peddling itself for nearly two years and still could not find a willing buyer.

Lordstown went public in 2020 through a merger with a special purpose acquisition company (SPAC) and said it would soon produce tens of thousands of electric pickups a year. However, by the time it filed for bankruptcy restructuring, Lordstown had produced only 65 cars.

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