Nikola founder Trevor Milton, who was recently pardoned after being convicted of securities fraud, is trying to buy the assets of his former company out of bankruptcy, according to new court filings and a person familiar with the matter.
Nikola filed for Chapter 11 bankruptcy protection in February and has said it hopes to sell its business by the middle of this month. Milton’s bid was met with a frosty reception — filings show the company stopped him from personally inspecting the assets at its Coolidge, Arizona, factory earlier this month, as the Phoenix Business Journal previously reported.
Milton’s interest in Nikola is the latest twist in the company’s long, odd story. Milton founded the company in 2014, took it public in one of the first high-profile special purpose acquisition mergers in 2020, stepped down a few months later after fraud allegations surfaced, and was convicted in 2022. He was sentenced to four years in prison in 2023, and just last month was pardoned by President Trump.
Meanwhile, Nikola struggled with battery fires, recalls, and its overall financial health before filing for bankruptcy.
Lawyers for a Nevada entity known as ISSO LLC said in a filing last week that it submitted a bid for Nikola assets on March 21. As part of the bid process, Nikola agreed to let ISSO inspect the factory. But the company refused to allow video or pictures to be taken and prohibited a specific ISSO representative from entering the factory.
The name of that representative has been redacted in the bankruptcy court filings. A lawyer representing Nikola described the person during an emergency hearing last week, and his description fit Milton. Milton’s father, Lance Milton, and one of his lawyers, Troy Wallin, appear on paperwork that ISSO LLC has filed with various states over the last few years.
A person familiar with Milton’s intentions, who spoke on the condition of anonymity, confirmed to TechCrunch he is pursuing a bid. A spokesperson for Milton did not respond to a request for comment.
At last week’s hearing, the lawyer for Nikola said Milton’s interest was “nothing more than a publicity stunt.” Judge Thomas Horan said the company “justified why that is necessary” to prohibit Milton from entering the facility. He denied ISSO’s motion to allow Milton to tour the factory.
It’s unclear if any other parties submitted bids for Nikola’s assets ahead of the April 3 deadline. On Friday, the court revealed it planned to hold an auction to “determine the highest and best offer” on April 7 at 10:00 a.m. ET. No updates had been posted to the bankruptcy docket at the time this story was published.
