Electric truck start-up Nikola has officially filed for Chapter 11 bankruptcy in the United States (U.S.) after failing to secure a buyer for its business.
Once a Silicon Valley start-up worth $30 billion, the company has become troubled by scandal in recent years and will now go to auction with its assets, pending approval.
Steve Girsky, President and CEO of Nikola, said:
“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 confirmed it had engaged with financial and legal advisors in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to sustain operations.
Following months of analysing other alternatives, the Company has ultimately decided to market and sell all, substantially all, or a portion of its assets.
The proposed bidding procedures, if approved by the Court, would allow interested parties to submit binding offers to acquire the truck maker’s assets.
Girsky continued:
“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.”
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