$NKLA PHOENIX - February 19, 2025 -
Die Nikola Corporation (Nasdaq: NKLA), a leading global provider of zero-emission transportation, energy and infrastructure solutions, today announced through the Marke HYLA that the company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Nikola has also filed a motion to authorize an auction and sale proceeding under Section 363 of the U.S. Bankruptcy Code.
Nikola has filed a series of customary "day one" motions with the court to ensure that its limited operations can continue during the sale process, including authorization to meet its obligations to employees. Subject to court approval, the Company intends to continue certain limited direct (non-dealer) service and support operations for trucks currently in service, including certain HYLA fueling operations, through the end of March 2025. Thereafter, the company will require one or more partners to support such activities.
Nikola is entering Chapter 11 with approximately $47 million of cash on hand to fund the above activities, complete the post-petition sale process and exit Chapter 11 through a plan process. Given the Company's liquidity profile and anticipated case costs and limited operations in Chapter 11, the Company intends to seek the Court's approval to proceed with a sale of its assets in a timeframe that balances its liquidity needs with its significant marketing efforts to best position the Company to maximize value for its stakeholders.
"With the dedication of our employees and the support of our partners, Nikola has taken significant steps to advance zero-emission transportation, including the launch of the first commercially available hydrogen fuel cell electric Class 8 trucks in North America and the development of the HYLA Hydrogen Refueling Highway connecting Northern California to Southern California," said Steve Girsky, President and CEO of Nikola. "Our customers have driven approximately 3.3 million fleet miles through both our FCEV and BEV truck platforms, and our HYLA refueling station network has dispensed well over 330 tons of hydrogen. Like other companies in the electric vehicle industry, we have been confronted with various market and macroeconomic factors that have impacted our ability to operate. Over the past few months, we have taken numerous steps to raise capital, reduce our debt, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our best efforts have not been sufficient to overcome these significant challenges, and the Board has determined that Chapter 11 is the best possible path forward for the Company and its stakeholders under the circumstances."
Nikola, along with its financial and legal advisors, conducted a comprehensive analysis of all available and credible alternatives to find a solution that would allow the company to continue operations. After months of actively pursuing these alternatives, the company concluded that a structured sale process was 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 conduct an orderly wind-down of its business.
The proposed bidding procedures, if approved by the Court, would allow interested parties to submit binding bids to acquire Nikola's assets acquired free and clear of Nikola's debt and certain liabilities. Interested parties could include both strategic and financial buyers, for whom extensive due diligence materials are available.
For more information about this process and the proposed asset sale, as well as other documents related to the chapter 11 proceeding, please visit the website of Epiq Corporate Restructuring, LLC, the Debtors' claims and notices agent located at https://dm.epiq11.com/Nikola. Nikola's legal counsel is Pillsbury Winthrop Shaw Pittman LLP and Potter Anderson & Corroon LLP, the investment banker is Houlihan Lokey Capital, Inc. and the financial advisor is M3 Partners. Interested parties should contact Drew M. Talarico and Marcus Bellows of Houlihan Lokey (nikola@hl.com) to, for further information on the auction and sale process and access to due diligence materials.
ABOUT NIKOLA CORPORATION The mission of
Nikola Corporation's mission is clear: pioneering solutions for a zero-emission 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, which is driving the evolution of the entire hydrogen fueling ecosystem that includes supply, distribution and dispensing.
Nikola is headquartered 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 regarding: Nikola's intention to continue to operate and support certain operations, including certain HYLA fueling operations, during the sale process and its beliefs regarding the length of time it expects to be able to operate without a partner; the Board'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 intention to market and sell its assets in a timeframe that balances its liquidity needs with its marketing efforts to best position the Company and maximize value for stakeholders; the Company's beliefs regarding an orderly wind-down of its operations; and expectations regarding the auction and sale process and related bidding procedures. Forward-looking statements involve risks and uncertainties that could cause actual results or performance to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: the court's approval of our first day motions; risks and uncertainties relating to our ability to successfully complete and consummate a Chapter 11 plan of reorganization; risks relating to the potential adverse effects of the bankruptcy proceedings on our business, financial condition, liquidity and results of operations; our ability to continue limited operations, maintain contracts critical to anticipated limited operations, and meet financial obligations during the bankruptcy proceedings; the outcome and timing of the bankruptcy proceedings and any potential sale of all or some of our assets; the impact of the bankruptcy filing 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 and need for cash and any other underlying assumptions; the length of time Nikola will operate under Chapter 11 and the continued availability of working capital during any such pendency; Nikola's ability to attract partners to continue limited operations; the impact of the Chapter 11 case on the trading price and volatility of our common stock and the potential delisting of our common stock; potential proceedings that may be initiated by third parties in connection with the bankruptcy filings or the potential sale of all or some of our assets; uncertainty regarding bankruptcy court approval of the potential sale of all or some of our assets or other conditions to such potential sale; our ability to negotiate and obtain financing, including debtor-in-possession financing, with lenders or creditors during the Chapter 11 case and to comply with restrictions imposed by the terms of the potential financing arrangements, if any; the timing or amount of distributions, if any, to our stakeholders; our ability to retain 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 our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. 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 obligation or undertaking to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
