Struggling EV startup Mullen bids for bankrupt Electrical Final Mile

Troubled EV startup Mullen Automotive Inc. has emerged because the main bidder for the belongings of bankrupt competitor Electrical Final Mile Options Inc., together with a now-idle former Hummer SUV manufacturing unit in Indiana.

Brea, Calif.-based Mullen agreed to a stalking horse bid of “virtually $100 million in whole consideration,” in keeping with a Sept. 16 submitting by the trustee in Troy, Mich.-based Electrical Final Mile’s Chapter 7 case. Competing bids are due by Oct. 3, and an public sale is scheduled for Oct. 7.

Particulars of the supply come after Mullen, which goals to deliver EVs to market together with a compact SUV and a sports activities automotive, introduced it was buying a majority stake in rival Bollinger Motors, based mostly in Oak Park, Mich., in a cash-and-stock transaction.

Mullen did not instantly reply to a request for remark.

The businesses are amongst numerous EV startups struggling to interrupt by means of in a market dominated by Tesla Inc. at a time of overstretched provide chains and excessive prices. Someday after the Bollinger deal was introduced, Mullen, whose inventory has declined about 90 % this 12 months, revealed it had fallen out of compliance with Nasdaq’s minimal share value necessities.

The trustee has mentioned that as many as 245 potential strategic or monetary events had been solicited for the belongings of Electrical Final Mile, which filed for chapter in June, and that 39 of these have executed non-disclosure agreements to carry out due diligence and probably make a bid. Securing Mullen as a stalking horse bidder “represents an amazing profit to the debtors’ estates and collectors,” he wrote in Friday’s submitting.

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