According to someone familiar with the new court filings and issues, Trevor Milton, who was recently granted after being convicted of securities fraud, is about to buy assets from the previous company from bankruptcy.
Nicola filed for Chapter 11 bankruptcy protection in February, saying she hopes to sell the business by mid-month. Milton’s bid was filled with a chilly reception. The filing shows that, as previously reported by the Phoenix Business Journal, it prevented the property from being privately inspected earlier this month.
Milton’s interest in Nicola is the latest twist in the company’s long, strange story. Milton founded the company in 2014, published in 2020 in one of the first famous special purpose acquisition mergers, resigning several months after allegations of fraud surfaced, and was convicted in 2022.
Meanwhile, Nicola struggled with battery fire, recall and its overall financial health before filing for bankruptcy.
A Nevada lawyer known as ISSO LLC said last week that he submitted a bid for Nicola assets on March 21 in his application. As part of the bidding process, Nicola agreed to have ISSO inspect the factory. However, the company refused to allow video or photos to be taken, banning certain ISSO representatives from entering the factory.
The name of the representative has been edited in a filing by the Bankruptcy Court. The attorney representing Nicola explained the person during last week’s emergency hearing, and his explanation fits with Milton. Milton’s father, Lance Milton, and one of his lawyers, Troy Wallin, appear in documents that ISSO LLC has filed with various states over the past few years.
Anyone familiar with Milton’s intentions, who spoke anonymously, confirmed to TechCrunch, where he is pursuing a bid. A Milton spokesman did not respond to requests for comment.
At last week’s hearing, Nicola’s lawyer said Milton’s interest was “no more than a publicity stunt.” Judge Thomas Horan said the company “justified why it was necessary” to ban Milton from entering the facility. He denied Isso’s allegations that Milton would allow tours of the factory.
It is unclear whether other parties submitted bids for Nicola’s assets ahead of the April 3 deadline. On Friday, the court revealed that it planned to hold an auction at 10am on April 7th to “determine the best and best offers.” No updates had been posted to Bankruptcy Docket at the time this story was released.
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