Case timeline

1. Mar 62024
   Plan: Lordstown wins confirmation of third modified Chapter 11 plan

   The court confirmed Lordstown Motors Corp.’s third modified first amended Chapter 11 plan, covering Lordstown Motors Corp., Lordstown EV Corporation, and Lordstown EV Sales LLC, after a March 5 confirmation hearing. The confirmation order moves the case into implementation: existing directors resign on the effective date, new organizational documents and management take over, and the debtors continue as separate post-effective-date entities while claims are consolidated for distribution purposes.

   The order also sets the post-confirmation architecture professionals will track from here: a Claims Ombudsman administers general unsecured claims, a Litigation Trust and Litigation Trustee handle designated litigation, and an Ohio Securities Litigation Escrow is created as a qualified settlement fund. The plan preserves NOL-related equity transfer restrictions, amends the equity incentive plan to cover 3,000,000 common shares, and implements discharge, debtor and third-party releases, exculpation, injunctions, and lien releases on the effective date. Class 8 Section 510(b) claims rejected the plan but were crammed down, while accepting impaired classes included Classes 3, 7, 9, and 10.

   Sources and provenanceMarch 6, 2024