Zero-emissions transport, energy supply and infrastructure specialist, Nikola Corporation, has announced that it, along with a selection of its subsidiaries, has filed voluntary petitions under Chapter 11 of the Bankruptcy Code.
The company is also seeking authorisation to pursue an auction and sale process under Section 363 of the US Bankruptcy Code.
Entering Chapter 11 with roughly 47 million USD in cash, which will be used to fund proceedings, the company has stated it intends to continue to offer limited service and support operations for trucks currently in operation, including certain HYLA fuelling activities through to the end of March 2025, following which time it will seek partners in order to support any ongoing operations.
Steve Girsky, President and CEO of Nikola, said:With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refueling highway, connecting Northern California to Southern California.
Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate. In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.
Nikola has also stated intentions to request authority from the Court to officiate a sale of all remaining assets in order to maximise its overall value for potential stakeholders.
The decision to file for bankruptcy had been reached following an extensive series of analysis’ into all potential financial avenues, as well as creditable alternatives to identify a solution that would allow the business to remain operational. Nikola will now market and sell all or a portion of its overall assets, allowing potential bidders the option to acquire the remaining business assets free and clear of the company’s indebtedness and selected liabilities.
