Lordstown Motors details voting results ahead of plan hearing

By Sarah Lizee

Olympia, Wash., Feb. 28 – Lordstown Motors Corp. detailed the results of voting for its Chapter 11 plan in a tabulation summary filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The results area as follows:

• 53 holders, or 88.33% in number, of $5.98 million, or 92.24% in amount, of general unsecured claims including insider votes voted to accept the plan, while seven holders, or 11.67% in number, of $503,209.48, or 7.76% in amount, voted to reject the plan;

• 37 holders, or 84.09% in number, of $5.98 million, or 92.24% in amount, of general unsecured claims excluding insider votes voted to accept the plan, while seven holders, or 15.91% in number, of $503,209.48, or 7.76% in amount, voted to reject the plan;

• Four holders, or 50% in number, of $4.00, or 50% in amount, of section 510(b) claims voted to accept the plan, while four holders, or 50% in number, of $4.00, or 50% in amount, voted to reject the plan; and

• One holder of all $10 million of Ohio securities class action claims voted to accept the plan.

The plan confirmation hearing is scheduled for March 5.

As previously reported, the company recently filed an amended plan to incorporate a settlement relating to claims against the debtors and some of their directors and officers asserted in a securities class action in Ohio.

Through the settlement, the debtors would pay $3 million into escrow on the effective date of the plan for the benefit of the putative class members in the Ohio securities litigation.

In addition, those putative class members would be entitled to receive a share of any proceeds from causes of action being retained by the debtors following the effective date, net of actual reasonable costs incurred in prosecuting the retained causes of action, in the amount of the lesser of (a) 25% of the net proceeds and (b) $7 million.

Confirmation of the plan would include preliminary approval of the Ohio securities litigation settlement, and the settlement would be effective on the effective date of the plan. The lead plaintiff in the Ohio securities litigation, through counsel, would be responsible for pursuing final approval of the proposed settlement after that.

Members of the putative settlement class will be provided with the opportunity to opt out of the settlement class.

Lordstown said the Ohio securities litigation settlement is contemplated to be part of a larger settlement by which the debtors are seeking to resolve the proof of claim filed by the SEC against the debtors.

As previously reported, on Jan. 4, the SEC filed a proof of claim against the debtors in the amount of $45 million.

The proposed plan requires that the SEC approve an offer of settlement submitted by the debtors to resolve the SEC claim.

The Lordstown, Ohio-based electric vehicle maker filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on June 27, 2023 under case number 23-10831.

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