Nikola Corp.’s Chapter 11 plan has officially cleared the runway. A Delaware bankruptcy judge on Friday approved the electric truck maker’s restructuring strategy, brushing aside a dramatic objection from its ousted founder and former CEO Trevor Milton — even after a presidential pardon entered the mix.
U.S. Bankruptcy Judge Thomas M. Horan, ruling from Wilmington, declared that Milton’s argument — that a pardon from former President Donald Trump should shield him from financial fallout — was legally flimsy. The ex-CEO, convicted of securities fraud for exaggerating Nikola’s technology, insisted the pardon established his innocence. The judge disagreed.
Milton’s Objection Falls Flat
Milton opposed the plan because it subordinates his claims for legal fee reimbursements behind other unsecured creditors. He argued that since Trump pardoned him and publicly stated he believed Milton “did nothing wrong,” Nikola had no grounds to push his claims down the ladder.
But Judge Horan was unpersuaded.
“I’m not going to consider any out-of-court statements the president made when his words were perfectly direct and clear and stated exactly what his intentions were,” the judge said, stressing that the pardon language itself offered no basis to rewrite history.
