Nikola Corporation, the electric truck manufacturer, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The company is pursuing a court-supervised auction and sale of its assets as part of a restructuring effort.
Nikola, which develops battery-electric and hydrogen fuel cell trucks under its HYLA brand, said it has approximately $47 million in cash on hand to sustain limited operations during the sale process. It has requested court approval to continue certain service and support operations for vehicles already in the field until the end of March 2025. After that, the company will require external partners to maintain these services.
Nikola cited market conditions and economic challenges affecting the electric vehicle sector as reasons for the bankruptcy filing. Despite efforts to raise capital, reduce liabilities, and streamline operations, the company determined that selling its assets through a structured process would be the best course of action to maximize value for stakeholders.
“With the dedication of our employees and support from our partners, Nikola has taken significant steps to advance zero-emissions transportation,” Nikola President and CEO Steve Girsky said in a statement. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges.”
The proposed auction will allow potential buyers, including both financial and strategic investors, to submit binding offers for some or all of Nikola’s assets. If approved, the sale would be conducted under Section 363 of the U.S. Bankruptcy Code, enabling transactions to proceed free of existing debts and certain liabilities.
Nikola’s legal advisors for the process are Pillsbury Winthrop Shaw Pittman LLP and Potter Anderson & Corroon LLP. Houlihan Lokey Capital, Inc. is serving as the company’s investment banker, while M3 Partners is acting as its financial advisor.
Further details about the bankruptcy proceedings and asset sale are available through Epiq Corporate Restructuring, LLC, the company’s claims and noticing agent, at https://dm.epiq11.com/Nikola.
