Struggling electric-truck maker Lordstown Motors filed for Chapter 11 chapter safety on Tuesday and mentioned that it might put itself up on the market amid an ongoing dispute over investments that had been promised by Taiwanese producer Foxconn.

Shares have been down over 60% in premarket buying and selling following the information.

Concurrently with its chapter submitting, Lordstown filed a swimsuit in opposition to Foxconn. The corporate accused Foxconn of fraud and of failing to abide by an settlement that referred to as for the Taiwan-based agency to speculate as much as $170 million in Lordstown, and for the 2 to work collectively on a spread of recent electrical autos.

In an announcement supplied to CNBC, Foxconn mentioned it had hoped to proceed discussions to succeed in an answer that might “fulfill all stakeholders” with out “resorting to baseless authorized actions.” However in gentle of the litigation and what it characterised as Lordstown’s makes an attempt to “mislead the general public,” it’s suspending talks and reserving the suitable to take authorized motion of its personal.

Lordstown, launched in 2019 with a manufacturing facility acquired from Basic Motors and the enthusiastic help of the Trump administration, struck a deal to promote that Ohio manufacturing facility to Foxconn for $230 million final yr. Following the deal, which closed in Could 2022, Lordstown and Foxconn  agreed to a second deal by which Foxconn would make investments as much as $170 million in Lordstown, taking a 19.3% stake within the startup.

Foxconn paid the primary $52.7 million due underneath that deal final yr. The following cost, of $47.3 million, was due inside 10 days of regulatory approval by the Committee on Overseas Funding in the USA. That approval was secured in late April, Lordstown mentioned – however Foxconn by no means made the cost.

As an alternative, Foxconn informed Lordstown that the startup had breached the deal by permitting its inventory value to fall under $1 per share. (Lordstown executed a 1:15 reverse inventory break up in Could, pushing its share value again over the crucial $1 mark.)

In early Could, Lordstown warned buyers {that a} chapter submitting was seemingly if it did not attain an settlement with Foxconn or purchase extra funding elsewhere. A couple of days later, Lordstown mentioned that it was practically out of money and that it might be pressured to cease manufacturing of its Endurance electrical pickup except it might discover a strategic companion.

Lordstown had simply $108.1 million in money accessible on the finish of March, after dropping $171.1 million within the first quarter.