Nikola Initiates Comprehensive Voluntary Chapter 11 Sale Process
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
Nikola enters Chapter 11 with approximately
"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
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
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Nikola headquarters is based in
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
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