Lightning eMotors to Liquidate Assets

Lightning eMotors, a Loveland, Colorado-based manufacturer of electric vehicles for commercial fleets, and its wholly owned subsidiary, Lightning Systems Inc., recently announced that the company is liquidating its assets to pay its creditors.

Cordes & Co., as receiver of the company, has entered into an asset purchase agreement to sell substantially all of the assets of the company, free and clear of all liens, claims, encumbrances, interests and liabilities, for $12.6 million in cash, subject to adjustment.

Closing of the transaction is contingent upon approval from the District Court of Larimer County in Colorado.

Cordes & Co. will distribute the funds to the company’s creditors “pursuant to their applicable priorities and as ordered by the court,” Lightning eMotors explained in a statement.

None of the funds from the transaction will go to Lightning’s shareholders.

The buyer under the asset purchase agreement does not intend to carry on the business of the Company, including the business of selling and servicing of zero-vehicle-emission vehicles,” Lightning eMotors added.

SEMA member companies and automotive enthusiasts have come out in strong opposition to the California Air Resources Board’s (CARB) “Advanced Clean Cars II” (ACC II) regulation that would ban the sale of new internal combustion engine motor vehicles by 2035. Specialty aftermarket businesses and industry supporters sent over 5,000 letters to the U.S. EPA expressing opposition to the agency providing California a Clean Air Act waiver, which is required for ACC II to take effect. Industry and enthusiasts alike have united in opposition to California’s Zero Emissions Vehicle (ZEV) mandate that they said would adversely impact automotive businesses, their employees and millions of automotive enthusiasts.