Trevor Milton bids to buy Nikola assets out of bankruptcy: Report

Trevor Milton, founder and former executive chairman of Nikola Corporation, is reportedly attempting to acquire the assets of the company he once led. According to a report by TechCrunch, court filings and a source familiar with the matter confirm that Milton is pursuing a bid for Nikola’s assets following its Chapter 11 bankruptcy filing in February.

Nikola has stated that it hopes to finalize a sale of its business by mid-April. However, Milton’s involvement has been met with resistance. Filings show the company blocked him from personally inspecting assets at its Coolidge, Arizona, manufacturing facility earlier this month, a decision previously noted by The Phoenix Business Journal.

Milton founded Nikola in 2014 and took it public in 2020 via a special purpose acquisition company (SPAC) merger. He stepped down from his role later that year after facing allegations of fraud, and he was convicted in 2022 on charges of securities fraud. Milton was sentenced to four years in prison in 2023 but was recently pardoned by former President Donald Trump.

In the bankruptcy proceedings, a Nevada-based entity named ISSO LLC submitted a bid on March 21 for Nikola’s assets. Nikola allowed ISSO to inspect the factory under restrictions, including a prohibition on video recording and photography, and barred a specific individual from entering the premises. The identity of the individual was redacted in court documents, but a lawyer for Nikola reportedly described the person in terms that matched Milton. ISSO LLC filings across several states have also included the names of Milton’s father, Lance Milton, and attorney Troy Wallin.

A source with direct knowledge of Milton’s plans confirmed to TechCrunch that he is pursuing the bid through ISSO LLC. A spokesperson for Milton did not respond to a request for comment.

During a recent court hearing, Nikola’s legal team described Milton’s involvement as “nothing more than a publicity stunt.” Judge Thomas Horan agreed that the company had justification for restricting his access to the factory and denied ISSO’s motion to permit a tour by Milton.

As of the April 3 bid deadline, it is unclear whether other parties submitted competing offers. The court scheduled an auction for April 7 at 10:00 a.m. ET to determine the highest and best offer. No further updates had been posted to the bankruptcy docket at the time of publication.