Nikola Founder Trevor Milton Battles Creditors Over Bankruptcy Subpoena
Trevor Milton, founder of bankrupt Nikola, is resisting a subpoena from the company’s creditors seeking details on his finances. Owing nearly $100 million, Milton faces accusations of hiding assets to avoid payments tied to arbitration losses. The dispute intensifies ahead of a June hearing, with Nikola’s bankruptcy estate relying heavily on the arbitration award to settle lawsuits.
Trevor Milton, the founder of electric truck maker Nikola, is currently embroiled in a legal battle with the creditors of his bankrupt company. Despite owing nearly $100 million before Nikola filed for bankruptcy in February, Milton has resisted a subpoena issued by the official committee of unsecured creditors seeking to uncover the current state of his financial affairs.
The subpoena was sent to Milton’s lawyers on April 1, following an arbitration case in 2023 that Milton lost, related to his criminal conviction. The creditors allege that Milton has not paid the owed amount and is attempting to shield assets from collection efforts.
Before Nikola’s bankruptcy, the company sued Milton in federal court in Arizona, accusing him of fraudulently transferring tens of millions of dollars to hinder collection efforts. Milton has spent the past two months fighting the subpoena, with his legal team arguing that the requested materials are protected under a court order from the Arizona case.
The dispute over the subpoena is expected to come to a head during a hearing scheduled for June 9. Neither Milton’s nor the creditors’ lawyers have commented publicly on the matter.
Most of Nikola’s assets have been sold off during the bankruptcy process. Lucid Motors acquired the leases on Nikola’s Arizona factory and hired about 300 employees, while an auction company purchased the remaining fleet of hydrogen-powered trucks.
The arbitration award against Milton remains one of the largest assets in Nikola’s bankruptcy estate and is critical to settling ongoing shareholder lawsuits related to misleading claims made during Nikola’s public offering process.
Despite the importance of the arbitration award, Milton has yet to make any payments. His legal troubles have been further complicated by a surprise pardon granted by former President Trump, which came as Milton was appealing a four-year prison sentence.
Milton has also commissioned a documentary set to premiere on June 10, aiming to present his perspective on the justice system and his legal battles.
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