Nikola to pursue value-maximizing sale
transactions for its operations
PHOENIX, Feb. 19,
2025 /PRNewswire/ -- Nikola Corporation (Nasdaq:
NKLA), a global leader in zero-emissions transportation and energy
supply and infrastructure solutions, via the HYLA brand, today
announced that the Company and certain of its subsidiaries have
filed voluntary petitions under Chapter 11 of the Bankruptcy Code
in the United States Bankruptcy
Court for the District of Delaware. Nikola has also filed a motion
seeking authorization to pursue an auction and sale process under
Section 363 of the U.S. Bankruptcy Code.
Nikola has filed a number of customary "first day" motions with
the Court to ensure its limited operations are able to continue,
including authorization to meet its obligations to employees,
during the sale process. Subject to Court approval, the Company
intends to continue certain limited directly provided (non-dealer)
service and support operations for trucks currently in the field,
including certain HYLA fueling operations through the end of
March 2025. Thereafter, the Company
will need one or more partners to support such activities.
Nikola enters Chapter 11 with approximately $47 million in cash on hand to fund the foregoing
activities, implement the postpetition sale process, and exit
Chapter 11 through a plan process. Given the Company's liquidity
profile and the anticipated expense of the cases and limited
operations in Chapter 11, the Company intends to request
authority from the Court to consummate a sale of its assets on a
timeline that balances its liquidity needs with its significant
prepetition marketing efforts to best position the Company to
maximize value for its stakeholders.
"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," said Steve Girsky, President and CEO of Nikola. "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, together with its financial and legal advisors, engaged
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 actively pursuing these
alternatives, the Company determined that a structured sale process
represents the best possible solution to maximize the value of its
assets. Nikola intends to market and sell all, substantially all,
or a portion of its assets and effectuate an orderly wind down of
its businesses.
The proposed bidding procedures, if approved by the Court, would
allow interested parties to submit binding offers to acquire
Nikola's assets, purchased free and clear of Nikola's indebtedness
and certain liabilities. Interested parties could include both
strategic and financial buyers, for whom substantial due diligence
materials are available.
Additional information about this process and proposed asset
sale, as well as other documents related to the Chapter 11
proceedings, is available on the website maintained by Epiq
Corporate Restructuring, LLC, the Debtors' claims and noticing
agent, located at https://dm.epiq11.com/Nikola. Nikola's legal
counsel is Pillsbury Winthrop Shaw Pittman LLP and Potter Anderson
& Corroon LLP, its investment banker is Houlihan Lokey Capital,
Inc., and its financial advisor is M3 Partners. Interested parties
should contact Drew M. Talarico and
Marcus Bellows at Houlihan Lokey
(nikola@hl.com) for additional information related to the auction
and sale process and for access to due diligence materials.
ABOUT NIKOLA CORPORATION:
Nikola Corporation's mission is clear: pioneering solutions for a
zero-emissions world. As an integrated truck and
energy company, Nikola is transforming commercial
transportation, with our Class 8 vehicles, including
battery-electric and hydrogen fuel cell electric trucks, and our
energy brand, HYLA, driving the advancement of the complete
hydrogen refueling ecosystem, covering supply, distribution and
dispensing.
Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility
in Coolidge, Arizona.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the federal
securities laws including, but not limited to, statements about:
Nikola's intent to continue service and support certain operations,
including certain HYLA fueling operations, during the sale process
and its beliefs regarding the length of time it expects to able to
do so without partners; the board of director's belief that chapter
11 represents the best possible path forward for Nikola and its
stakeholders; Nikola's belief that a structured sale process
represents the best possible solution to maximize the value of its
assets; Nikola's intent to market and sell its assets on a timeline
that balances its liquidity needs with its prepetition marketing
efforts to best position the Company to maximize stakeholder value;
the Company's beliefs regarding an orderly wind down of its
business; and expectations relating to the auction and sale
process, and related bidding procedures. Forward-looking statements
involve risks and uncertainties that may cause actual results or
performance to differ materially different from those expressed or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to: the approval by the
court of our first day motions; risks and uncertainties regarding
our ability to successfully consummate and complete a plan of
reorganization under chapter 11; risks associated with the
potential adverse impact of the bankruptcy proceedings on our
business, financial condition, liquidity and results of operations;
our ability to continue operating on a limited basis, maintain
contracts that are critical to expected limited operations and
meet financial obligations during the bankruptcy proceedings; the
outcome and timing of the bankruptcy process and any potential sale
of all or some of our assets; the effect of the filing of
bankruptcy and any potential sale of all or some of our assets on
our relationships with customers, suppliers, creditors, employees
and other third parties; our expectations regarding liquidity and
obligations, including our use of, and need for, cash and any other
underlying assumptions; the length of time that Nikola will operate
under chapter 11 and the continued availability of operating
capital during such pendency; the ability of Nikola to obtain
partners to continue limited operations; the impact of the chapter
11 case on the trading price and volatility of our common stock and
the possible delisting of our common stock; any potential
proceedings that may be brought by third parties in connection with
the bankruptcy petitions or the potential sale of all or some of
our assets; uncertainty regarding obtaining the bankruptcy court's
approval of the potential sale of all or some of our assets or
other terms and conditions to any such potential sale; our ability
to negotiate and obtain any financing, including debtor in
possession funding, with lenders or creditors during the chapter 11
case and to comply with the restrictions imposed by the terms and
conditions of the potential financing arrangements, if any; the
timing or amount of any distributions, if any, to our stakeholders;
our ability to retain senior management and other key personnel
during the pendency of the chapter 11 case; and the other factors
discussed in our reports, including our Quarterly Report on Form
10-Q for the quarter ended September 30,
2024, and subsequent reports filed with the Securities and
Exchange Commission. All forward-looking statements are based on
information available to Nikola as of the date of this press
release. Nikola undertakes no duty or obligation to update these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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SOURCE Nikola Corporation
