Form 4: Nu Ride Inc. Former CEO Hightower Reports Share Transactions Following Bankruptcy Emergence
SEC Form 4 Filing
Former CEO Edward T. Hightower reports acquisition and disposal of Class A common stock and Restricted Stock Units (RSUs) following Nu Ride Inc.'s emergence from Chapter 11 bankruptcy.
Summary
- Edward T. Hightower, the former CEO & President of Nu Ride Inc. (formerly Lordstown Motors Corp.), reported transactions involving the company's Class A common stock and Restricted Stock Units (RSUs) on March 14, 2024.
- These transactions occurred following the company's emergence from Chapter 11 bankruptcy after the confirmation of their Third Modified First Amended Joint Chapter 11 Plan.
- The reported transactions include the acquisition of 22,222 and 40,000 shares of Class A common stock through the conversion of RSUs.
- Hightower also reported the disposal of 6,267 and 11,440 shares of Class A common stock to satisfy tax withholding obligations related to the settlement of the RSUs.
- After these transactions, Hightower beneficially owns 51,448 shares of Class A common stock.
- The vesting of RSUs that was to occur during the Chapter 11 Cases was stayed until the Effective Date, and vesting that would occur after the Effective Date was accelerated due to Hightower's termination of employment.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing transactions related to the company's emergence from bankruptcy. It doesn't inherently convey positive or negative sentiment, but rather reports factual information.
Industry Context
This filing reflects the aftermath of Lordstown Motors' bankruptcy and subsequent restructuring as Nu Ride Inc. Executive compensation and equity ownership changes are typical occurrences during and after such events.
Legal Proceedings
- Lordstown Motors Corp., together with its subsidiaries, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.
Stakeholder Impact
- Shareholders are impacted by the dilution resulting from the issuance of shares upon conversion of RSUs.
- Employees, including former executives like Hightower, are affected by the vesting and settlement of equity awards.
Key Dates
| Date | Description |
|---|---|
| 2021-11-09 | Reporting person was granted 33,333 RSUs, vesting in three equal annual installments beginning on November 9, 2022. |
| 2022-08-15 | The reporting person was granted 40,000 RSUs, vesting in three equal annual installments beginning on August 15, 2023. |
| 2023-06-27 | Lordstown Motors Corp. filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. |
| 2024-03-05 | The Bankruptcy Court entered an order confirming the Third Modified First Amended Joint Chapter 11 Plan of Lordstown Motors Corp. |
| 2024-03-14 | The Plan was consummated and became effective, and the Debtors emerged from the Chapter 11 Cases with the Company changing its name to Nu Ride Inc. |
| 2024-03-14 | Date of earliest transaction reported. |
| 2024-03-18 | Date of signature on the Form 4 filing. |
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