Here's what you need to know:
- Bollinger Motors has been placed into receivership by a federal judge, meaning a court-appointed receiver is now managing the company’s assets and operations.
- The receivership follows a lawsuit filed by company founder Robert Bollinger, who claims he is owed $10.5 million from a personal loan he gave the company. The loan carried a 15% annual interest rate, and a missed payment in February triggered the dispute.
- Despite being in receivership, Bollinger Motors is still operational, continuing to sell and service its B4 battery-electric chassis cabs.
- CEO Bryan Chambers stated that the company is exploring ways to resume full long-term operations and remains optimistic about its future.
Last week we learned that Michigan-based Bollinger Motors has been placed in receivership and its assets frozen by a federal judge in the wake of a lawsuit filed in March by founder Robert Bollinger.
[Related: Federal judge places Bollinger Motors in receivership, assets frozen]
Things have gone quiet since then. Clean Trucking has since reached out to Bollinger Motors for updates. But first, some necessary context.
The suit, Robert Bollinger vs. Bollinger Motors, argues that Mr. Bollinger, who served as CEO from the company's 2015 founding until last summer, is owed $10.5 million from a personal loan he made to help keep the company afloat. The loan has an annual 15% interest rate but the company missed a $125,000 payment in February. It has since paid back the money but Mr. Bollinger claims the amount did not satisfy the loan's terms.
The loan, intended for B4 production ramp-up, was announced last fall by Mullen Technologies, which purchased a $148 million controlling interest in Bollinger Motors in September 2022.
[Related: A quick spin in Bollinger's B4 class 4 battery-electric chassis cab]
Bollinger Motors, at last report, also defaulted on $500,000 of credit card debt that was guaranteed by Mr. Bollinger. He claims his personal credit card is now rejected.
So what's happening now? Is this the end of Bollinger Motors, which recently began deliveries of its battery-electric medium-duty B4 chassis cab?
Clean Trucking received the following update from Bollinger Motors' President and CEO, Bryan Chambers:
“It’s true that Bollinger Motors is currently in receivership. Receivership is a legal process where a court-appointed receiver manages and controls a company’s assets and operations with the intent to protect assets, maximize value and pay creditors.
"Receivership does not necessarily mean a company is headed toward liquidation. In fact, receivership is often used to avoid liquidation and can be the best course of action to help a company move forward.
"For Bollinger Motors, the receiver is working with our management team to enable day-to-day operations. We continue to sell and service our trucks and support our dealers and customers.
"At the same time, we are exploring alternatives to help resume full long-term operations. While we can’t comment on specific alternatives at this time, we are optimistic about our prospects for moving forward with the B4 and future products.”
This is a developing story. Stay tuned for additional updates.
