Hydrogen Truck Starts Nikola Application Chapter 11 Bankruptcy Protection After Wednesday when the buyer was not found or additional funds were obtained to maintain operations.
Nikola used to be Silicon Valley dear, worth $30 billion in June 2020 Public Merger through special purpose acquisitions. But a series of scandals surrounding its founder and former CEO Trevor Milton made the company fall freely.
Now, Nikola plans to auction off his assets, which is yet to be approved by the court.
“Like other companies in the electric vehicle industry, we face a variety of markets and macroeconomics that affect our operational capabilities,” Nikola President and CEO Steve Girsky said in a statement. factor.”
“In recent months, we have taken many actions to raise funds, reduce debt, clear balance sheets and retain cash to maintain our business. Unfortunately, our best efforts are not enough to overcome these significant challenges, the Board of Directors has determined the No. 1 Chapter 11 represents the best way forward in the case of the company and its stakeholders.”
The company has about $47 million in cash on hand to fund its bankruptcy process. Nikola’s proposed tendering process will allow interested persons to submit binding offers to acquire Nikola’s assets without regard to the company’s debt or liabilities.
Some of these assets include Nikola’s 8-level hydrogen fuel cell electric truck and battery electric truck platform. Nicholas is also developing refueling Hyla hydrogen in California.
Bankruptcy filings are limited to one year. Nikola is considered a golden example of a cliff and even struck a multi-billion dollar deal with General Motors. Until Milton was charged with fraud for making exaggerated claims about the company’s electric truck technology.
Prosecutors in the Milton case claim he has deceived investors since 2019 because he lay on Nikola, built a truck from “the ground” and developed it actually elsewhere Purchased battery.
Then Notorious Nikola Marketing Video This shows that a truck seems to drive on its own. In fact, it rolled down the mountain.
Following the video, a report by ticket conductor Hindenburg Research claimed the company was fraudulent, and Milton resigned in September 2020. He was convicted in 2022. He is currently on bail on appeal. Four years in prison.
Nicholas finally paid $125 million fine in settlement with the U.S. Securities and Exchange Commission. The company’s stock collapsed, causing huge losses to investors and companies.
Since then, Nicholas has been working hard to raise enough funds to continue operations. Recently, in December 2024, Nicholas tried Raised $100 million Among the common stocks that General Stocks sells debt repayments and raises equity, the company has only enough cash to support its business into Q1 2025 after investors warned investors a month before its third-quarter earnings call.
Nicholas reported $19,000 in cash at the end of the third quarter.
