Trevor Milton Wants to Buy Nikola Assets

Trevor Milton's Bid to Reacquire Nikola Assets

Following a recent pardon related to securities fraud convictions, Nikola Corporation’s founder, Trevor Milton, is reportedly attempting to purchase the assets of his former company as it navigates bankruptcy proceedings. This information stems from recent court documents and a source with direct knowledge of the situation.

Nikola's Bankruptcy and Initial Response

Nikola initiated Chapter 11 bankruptcy protection in February, with the stated goal of selling its business operations by mid-April. Milton’s offer, however, has been met with resistance. Court filings indicate that the company previously prevented him from conducting a personal inspection of the assets located at its Coolidge, Arizona manufacturing plant.

A History of Nikola and its Founder

Milton’s renewed interest in Nikola represents another development in the company’s complex history. He established the company in 2014 and led it through a public offering via a special purpose acquisition company (SPAC) in 2020.

Following allegations of fraud, Milton resigned from his position a few months later. A conviction followed in 2022, resulting in a four-year prison sentence in 2023. He received a presidential pardon from President Trump just last month.

Challenges Faced by Nikola

Prior to filing for bankruptcy, Nikola encountered significant challenges, including battery fires, product recalls, and persistent financial difficulties.

ISSO LLC's Bid and Restrictions

Legal representatives for ISSO LLC, a Nevada-based entity, disclosed in a recent filing that a bid for Nikola’s assets was submitted on March 21st. As part of the bidding process, ISSO was granted permission to inspect the factory.

However, Nikola imposed restrictions on the inspection, prohibiting both video and photographic documentation. Furthermore, a specific representative from ISSO was denied access to the facility.

Connection to Trevor Milton

The identity of the restricted ISSO representative remains confidential in the court filings. During an emergency hearing, a Nikola attorney described the individual in a manner consistent with Trevor Milton. Documentation filed by ISSO LLC across several states lists Milton’s father, Lance Milton, and his legal counsel, Troy Wallin.

An anonymous source familiar with Milton’s plans has confirmed to TechCrunch that he is actively pursuing a bid to acquire the assets. A spokesperson for Milton has not yet responded to requests for comment.

Nikola's Characterization and Court Ruling

During last week’s hearing, Nikola’s legal counsel characterized Milton’s interest as a “publicity stunt.” Judge Thomas Horan agreed with the company’s rationale for denying Milton access to the facility and subsequently denied ISSO’s motion for a factory tour.

Upcoming Auction

The court has not yet revealed whether other parties submitted bids before the April 3rd deadline. An auction is scheduled for April 7th 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 further updates have been posted to the bankruptcy court docket.