Trevor Milton Subpoena: Nikola Founder Faces Creditor Inquiry

Trevor Milton Faces Creditor Subpoena Amidst Bankruptcy Proceedings

Trevor Milton, the founder of Nikola who recently received a pardon, is currently contesting a subpoena issued by the creditors involved in his electric trucking company’s bankruptcy.

Subpoena Details and Outstanding Debt

According to a recent court filing, the official committee representing unsecured creditors delivered the subpoena to Milton’s legal counsel on April 1st. Prior to Nikola’s bankruptcy filing in February, Milton reportedly owed the company approximately $100 million. This debt stemmed from an arbitration case concluded in 2023, following his criminal conviction, which he ultimately lost.

The creditor committee asserts that Milton has not yet fulfilled his financial obligations and is utilizing the subpoena to ascertain his present financial standing.

Allegations of Asset Transfers

Before the bankruptcy declaration, Nikola initiated legal action against Milton in Arizona federal court. The lawsuit alleged that Milton engaged in “fraudulently transferring away tens of millions of dollars of his assets” with the intent to obstruct Nikola’s efforts to recover the funds awarded through arbitration, as stated by the committee.

Ongoing Legal Battle

Milton has actively resisted the subpoena for the past two months. His lawyers have informed the presiding judge that they believe the requested information is protected under a protective order established in the Arizona case.

A hearing is scheduled for June 9th to address the dispute surrounding the subpoena.

Lack of Response

Requests for comment from legal representatives for both the creditors’ committee and Trevor Milton have not yet received a response.

Nikola's Asset Sales

A significant portion of Nikola’s assets have already been liquidated during the bankruptcy process. Lucid Motors acquired the leases for Nikola’s Arizona factory and headquarters, and subsequently employed approximately 300 former Nikola employees.

Furthermore, an auction house purchased Nikola’s remaining inventory of hydrogen-powered trucks.

Arbitration Award as a Key Asset

Consequently, the arbitration award now represents one of the most substantial and critical remaining assets within Nikola’s estate.

Shareholder Lawsuit and SEC Settlement

Prior to initiating bankruptcy proceedings, Nikola faced a class-action lawsuit from shareholders alleging misleading statements made during the company’s transition to becoming a publicly traded entity.

While Nikola reached a settlement with the Securities and Exchange Commission regarding these claims, the shareholder lawsuit remained unresolved when the company filed for bankruptcy.

Bankruptcy Plan and Unpaid Award

The initial plan during bankruptcy was to utilize Milton’s arbitration award to resolve the shareholder lawsuit. However, the creditor committee states that Milton “has yet to pay a cent.”

Adding to the complexity, Milton, who was appealing his four-year prison sentence, received a surprising pardon from President Trump. Shortly thereafter, Nikola’s legal team accused Milton of attempting to disrupt the bankruptcy proceedings.

Upcoming Documentary

In the meantime, Milton has commissioned a documentary scheduled for release on June 10th, promising to reveal the “true story about how the so called ‘justice system’ nearly destroyed an innocent man.”