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Nikola Corporation, a leader in zero-emissions transportation and energy infrastructure through its HYLA brand, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The company and certain subsidiaries initiated the voluntary bankruptcy process to facilitate a comprehensive sale of assets under Section 363 of the U.S. Bankruptcy Code, aiming to maximize value for stakeholders.
Key Highlights:
- Chapter 11 Filing: Nikola filed for voluntary Chapter 11 to initiate a structured asset sale process.
- Operations During Bankruptcy: The company seeks approval to continue limited operations, including supporting existing trucks and HYLA fueling operations through March 2025.
- Cash on Hand: Nikola enters the process with approximately $47 million in cash to support operations and the sale process.
- Future Outlook: The company aims to sell all or part of its assets and wind down operations if necessary.
- Bidding Process: Pending court approval, interested parties can submit binding offers for Nikola’s assets, which will be sold free and clear of existing debts.
Steve Girsky, President and CEO of Nikola, emphasized the company’s efforts to advance zero-emissions transport, including launching North America’s first Class 8 hydrogen fuel cell trucks and developing the HYLA hydrogen refueling network. He acknowledged the 3.3 million fleet miles driven by Nikola’s trucks and over 330 metric tons of hydrogen dispensed but cited challenging market and macroeconomic conditions as key reasons for the Chapter 11 filing.
Despite actions to raise capital, reduce liabilities, and conserve cash, the company concluded that a structured asset sale was the best path forward. Nikola will market its assets to both strategic and financial buyers, providing extensive due diligence materials for potential bidders.
Additional details on the bankruptcy proceedings and the auction process can be found on Epiq Corporate Restructuring’s website at dm.epiq11.com/Nikola.
About Nikola Corporation:
Nikola Corporation aims to pioneer a zero-emissions future, offering Class 8 battery-electric and hydrogen fuel cell electric trucks. Through its HYLA brand, the company also focuses on developing a complete hydrogen refueling ecosystem. Headquartered in Phoenix, Arizona, Nikola operates a manufacturing facility in Coolidge, Arizona.
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