Nikola Declares Bankruptcy, Will Sell Off Assets
Hunt for Buyer Came Close; Vehicle OEM Signed Letter of Intent
A Nikola Tre hydrogen fuel cell truck. (Nikola Corp.)
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Truck maker Nikola Corp. filed for Chapter 11 bankruptcy protection Feb. 19 and plans to auction off its assets after a tumultuous 18 months featuring multiple rounds of layoffs, regular executive turnover and an increasingly fervid hunt for more funds or a buyer.
Failing to find a white-knight buyer willing to bankroll hydrogen fuel cell electric and battery-electric Class 8 truck production, although Nikola came close, the company sought court protection in Delaware for “an orderly wind down of the business.”
A first hearing on the bankruptcy will be held at 10 a.m. ET on Feb. 20 before the U.S. Bankruptcy Court for the District of Delaware.
The company said it plans to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code. A stalking horse bidder will be sought. A stalking horse bid is an initial offer for the assets, meaning there is a bar other bidders cannot undercut.
If necessary, the auction will take place March 31, according to court documents, with the sale likely by the end of th…
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