Nikola Corporation Files for Chapter 11 Bankruptcy Protection
Nikola Corporation, a US-based truck manufacturer known for its electric and hydrogen vehicles, has filed for Chapter 11 bankruptcy protection. The company aims to sell its assets as it winds down operations.
The filing, made in the US Bankruptcy Court for the District of Delaware, highlights Nikola’s financial struggles and the need for a structured sale process. The company has also requested court authorization to conduct an auction under the US Bankruptcy Code.
Entering Chapter 11 proceedings with approximately $47 million in cash, Nikola plans to use these funds to support limited ongoing operations, facilitate the sale process, and navigate the bankruptcy proceedings. The company intends to continue limited service and support for its existing trucks, including certain fueling operations, until the end of March, pending court approval. Beyond that, partnerships will be necessary to maintain these services.
The proposed bidding procedures will allow interested parties, including strategic and financial buyers, to submit binding offers for Nikola’s assets.
Steve Girsky, President and CEO of Nikola, stated, “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.”
Girsky added, “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. Despite our efforts to raise capital, reduce liabilities, clean up our balance sheet, and preserve cash, we have faced significant challenges. The Board has determined that Chapter 11 represents the best possible path forward for the company and its stakeholders.”
