Electric Last Mile Solutions, Inc filed amended motion in the US Bankruptcy Court for the sale of substantially all its assets on September 16, 2022. The debtor seeks the Court's approval for the sale of substantially all its assets to Mullen Automotive Inc., stalking horse bidder, for consideration of $55 million in cash, cure amounts, assumption or payoff of the land contracts pursuant to the asset purchase agreement dated, September 16, 2022 . To qualify as a qualified bidder, interested parties should submit their bids by October 3, 2022, along with good-faith deposit in the amount of 10% of the bid price i.e. $5.5 million.

The initial minimum overbid should be at least $1 million more than the initial purchase price. The debtor has scheduled an auction on October 7, 2022. At the auction, the subsequent bids would be in increments of $1 million.

The stalking horse bidder would be entitled to a break-up fee of $1.65 million and expense reimbursement in case of termination of the asset purchase agreement. The sale hearing is scheduled for October 12, 2022. The proceeds from the sale would be used to pay off the amount owed to the debtor's pre-petition lender.