Nikola Initiates Comprehensive Voluntary Chapter 11 Sale Process

Core Viewpoint - Nikola Corporation has filed for Chapter 11 bankruptcy and is pursuing a structured sale process to maximize the value of its assets amid significant operational challenges [1][4][3]. Group 1: Bankruptcy Filing and Sale Process - Nikola Corporation and certain subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware [1]. - The company has requested authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code [1]. - Nikola has approximately $47 million in cash on hand to fund operations during the bankruptcy process and to implement the postpetition sale process [3]. Group 2: Operational Continuity and Employee Obligations - Nikola has filed customary "first day" motions to ensure limited operations can continue, including meeting obligations to employees during the sale process [2]. - The company intends to continue certain limited service and support operations for trucks currently in the field, including HYLA fueling operations, through the end of March 2025, subject to court approval [2]. Group 3: Strategic Decisions and Market Position - The Board of Directors has determined that Chapter 11 represents the best path forward for the company and its stakeholders due to various market and macroeconomic factors impacting operations [4]. - Nikola has engaged in extensive analysis to identify solutions for sustaining operations and concluded that a structured sale process is the best option to maximize asset value [4]. Group 4: Bidding Procedures and Interested Parties - Proposed bidding procedures, if approved by the court, will allow interested parties to submit binding offers to acquire Nikola's assets free of indebtedness and certain liabilities [5]. - Interested parties may include both strategic and financial buyers, with substantial due diligence materials available [5].