Form 4: Nu Ride Inc. Executive Donna Bell Reports Changes in Beneficial Ownership After Bankruptcy Emergence
SEC Form 4 Filing
Following Nu Ride Inc.'s emergence from Chapter 11 bankruptcy, FMR EVP Donna Bell reports the vesting and settlement of restricted stock units and shares withheld for tax obligations.
Summary
- Donna Bell, FMR EVP of PRD CRTN, ENG&SUP CHN at Nu Ride Inc. (formerly Lordstown Motors Corp.), filed a Form 4 detailing changes in beneficial ownership.
- The filing is triggered by the company's emergence from Chapter 11 bankruptcy on March 14, 2024, referred to as the 'Effective Date'.
- On this date, 16,000 restricted stock units (RSUs) vested and converted into Class A common stock on a one-for-one basis.
- Additionally, 5,424 shares were withheld by Nu Ride Inc. to cover Bell's tax obligations related to the RSU settlement.
- Following these transactions, Bell directly owns 10,576 shares of Class A common stock.
- Bell's employment with the Debtors terminated in November 2023.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing stock ownership changes following a bankruptcy event. It is neutral in tone and factual in nature.
Industry Context
This filing reflects the aftermath of Lordstown Motors' bankruptcy and subsequent restructuring into Nu Ride Inc. Executive compensation and equity ownership changes are typical during such transitions.
Legal Proceedings
- On June 27, 2023, Lordstown Motors Corp., together with its subsidiaries (collectively, the 'Debtors'), filed voluntary petitions for relief (the 'Chapter 11 Cases') under Chapter 11 of the United States Bankruptcy Code (the 'Bankruptcy Code') in the United States Bankruptcy Court for the District of Delaware (the 'Bankruptcy Court').
Stakeholder Impact
- Shareholders will see changes in the ownership structure of the company as a result of the bankruptcy proceedings and subsequent equity adjustments.
- Employees may have experienced changes in their compensation and benefits packages as part of the restructuring.
Key Dates
| Date | Description |
|---|---|
| July 11, 2022 | Reporting person was granted 34,666 RSUs (consisting of an inducement grant of 16,666 RSUs and an annual grant of 18,000 RSUs) vest in three installments, with 16,000 RSUs vesting on August 15, 2023, 11,000 RSUs vesting on August 15, 2024 and 7,666 RSUs vesting on August 15, 2025. |
| June 27, 2023 | Lordstown Motors Corp. filed for Chapter 11 bankruptcy. |
| August 15, 2023 | Scheduled vesting date of 16,000 RSUs, stayed due to Chapter 11. |
| November 2023 | Dr. Bell's employment with the Debtors terminated. |
| March 5, 2024 | Bankruptcy Court entered an order confirming the Third Modified First Amended Joint Chapter 11 Plan. |
| March 14, 2024 | Effective Date: Nu Ride Inc. emerged from Chapter 11 bankruptcy, RSUs vested, and shares were withheld for taxes. |
| August 15, 2024 | Scheduled vesting date of 11,000 RSUs. |
| August 15, 2025 | Scheduled vesting date of 7,666 RSUs. |
| 03/18/2024 | Date of filing. |
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