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Electric Last Mile Solutions, Inc., an American commercial electric vehicle (EV) company has announced its intention to file for Chapter 7 bankruptcy.
In February 2022following the resignations of Jim Taylorthe former CEO of the company, and Jason LuoFounder and Former Executive Chairman, ELMS Named Board Member Shauna McIntyre as CEO and interim president.
The ELMS Board of Directors and new management team led by Ms. McIntyre have launched a comprehensive review of the company’s products and go-to-market plans.
This process included evaluating the company’s planned product offerings, production plans and certification processes, including the possibility of achieving previously announced goals.
Based on the findings of the same investigation initiated by the Board, ELMS was forced to withdraw its financial guidance and declare the company’s previous financial statements unreliable.
Ultimately, the Board has determined that it is in the best interests of the company and its shareholders, stakeholders, creditors and other interested parties to file for Chapter 7 relief.
Ms McIntyre said: “I am very disappointed with this result as our ELMS team has shown incredible determination to prepare our electric vans to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation. Unfortunately, there were too many obstacles to overcome in the short time we had. I couldn’t be more proud of what our team was able to accomplish under very difficult circumstances. It 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. »
“Over the past several months, the ELMS Board of Directors and the new ELMS management team have worked tirelessly to resolve the financial, governance and operational issues inherited from the company, and tremendous progress has been made. achieved, in particular towards the certification of vehicles”, adds Brian Krzanich, Chairman of the Board of ELMS and former CEO of Intel. “Therefore, it is extremely frustrating that we had to go this route, but it was the only responsible next step for our shareholders, partners, creditors and employees.”
ELMS’ first vehicle, the Urban Delivery, was to be the first Class 1 commercial electric vehicle in the US market.