Electric Last Mile Solutions, Inc., a US commercial electric vehicle (EV) company has announced plans to file for Chapter 7 bankruptcy.
In February 2022, following the resignations of Jim Taylor, the company’s former Chief Executive Officer, and Jason Luo, the founder and former Executive Chairman, ELMS appointed Board member Shauna McIntyre as interim CEO and President.
The ELMS Board and the new leadership team under Ms. McIntyre launched a comprehensive review of the company’s products and commercialisation plans.
This process included assessing the company’s planned product offerings, production plans, and certification processes, including the feasibility of meeting previously announced targets.
Based on the findings of the same Board-initiated investigation, ELMS was forced to withdraw financial guidance and declare the company’s past financial statements unreliable.
Ultimately, the Board determined that it is in the best interest of the ompany and the its stockholders, stakeholders, creditors, and other interested parties to file for Chapter 7 relief.
Ms. McIntyre says: “I’m very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation. Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us. I could not be prouder of what our team has been able to accomplish under very challenging circumstances. This is a viable and essential technology, and I am confident that many of our talented employees will play a future role in this energy transition effort.”
“For the past several months, the ELMS board and the new ELMS leadership team have worked nonstop to address legacy financial, governance and operational matters at the Company, and enormous progress was made, including towards vehicle certification,” adds Brian Krzanich, ELMS Board Chair and former CEO of Intel. “Therefore, it’s extremely frustrating that we must take this route, but it was the only responsible next step for our shareholders, partners, creditors, and employees.”
ELMS’ first vehicle, the Urban Delivery, was anticipated to be the first Class 1 commercial electric vehicle in the U.S. market.
Keyword: Electric Last Mile Solutions, Inc. Announces Chapter 7 Bankruptcy Filing