Hyzon Motors has granted its acting CEO special voting power to ensure the approval of its liquidation plan, marking a significant step in the company’s dissolution process.

Hyzon has issued a special voting share to its acting CEO, Dr. Christian Mohrdieck, to ensure its proposed liquidation and dissolution plans proceed.

The troubled US fuel cell and truck firm issued a Series A preferred stock to Dr. Christian Mohrdieck, granting him a number of votes equal to all outstanding Class A common stock, to effectively guarantee approval of the liquidation plan.

However, these votes only activate if the number of Class A shares voting ‘for’ exceeds the combined number voting ‘against’ or ‘abstaining’. If that condition is met, the preferred share casts its full voting power in favour, effectively securing approval.

Hyzon’s board implemented this mechanism after two prior attempts to hold the vote failed due to insufficient shareholder participation. The company argues that without approval, bankruptcy may be the only alternative, potentially diminishing any remaining value for creditors and shareholders.

However, H2 View understands if passed, investors may miss out on salvaging any funds once creditors are paid. As common shareholders, they are last in the payout hierarchy and will only receive funds if assets remain after all debts are settled.

Mohrdieck, a former Daimler executive, had served as Chief Technology Officer from January 2024. He was appointed acting CEO in February after Parker Meeks left the role.

Hyzon initiated the proceedings early this year after its management concluded there were “no viable strategic alternatives” to continue operating.

It had cited “inability to raise funding and the future uncertainty relating to the availability of government subsidies,” nodding to the tight criteria under California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).

Hyzon’s Q3 2024 results revealed the firm had burned through nearly $25m in cash reserves, leaving it with just $6.5m. It followed a significant period of instability in the company’s near-five-year history, characterised by governance issues and strategy overhauls.

Read more:The year that rocked and reshaped Hyzon Motors

In February, the company was delisted from the Nasdaq stock exchange and announced its expected SEC deregistration.

Trio’s woes shine spotlight on stalling hydrogen fuel cell trucking sector

It’s been a turbulent first quarter for the hydrogen trucking sector.

February 19’s news that Nikola has been forced into Chapter 11 may not come as a surprise to those who have been following its fortunes, but it will raise awareness around the economic challenges facing the FCEV trucking sector.

The first point worth remembering, amid all the bankruptcy headlines, is a reminder on the nature of Chapter 11 bankruptcy protection; a company that files under Chapter 11 can continue to do business, but its stock is usually delisted and previous debts paused for payment.

Chapter 11 essentially gives Nikola time to restructure its finances so it can try to pay its bills. The key point is that it’s not always a death knell; American Airlines, for example, filed for Chapter 11 in 2011 and came out the other side after restructuring debts and costs.

In Nikola’s case, it remains to be seen if it can find a buyer for some or all of its business…

Click here to keep reading.