The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Electric Last Mile Solutions, Inc on September 22, 2022. The Court approved the asset purchase agreement between the debtor and Mullen Automotive Inc., for the sale of substantially all its assets for a purchase price of approximately $93.65 million consisting of cash in the amount of $56.65 million. To qualify as a qualified bidder, interested parties should submit their bids by October 3, 2022.

The initial minimum overbid should be in the amount of $1 million more than the initial purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on October 6, 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 13, 2022.