Zero-emissions transportations and energy supply and infrastructure solutions, Nikola Corp., Phoenix, announced that it and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Nikola also filed a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code. It has also filed a number of customary “first day” motions with the court to ensure its limited operations are able to continue, it notes, including authorization to meet its obligations to employees, during the sale process.

Subject to court approval, Nikola intends to continue certain limited directly provided (non-dealer) service and support operations for trucks currently on the field, it shares, including certain HYLA fueling operations through the end of March 2025. After that time, Nikola will need one or more partners to support such activities.

The company enters Chapter 11 with approximately $47 million in cash on hand to fund foregoing activities, implement the post-petition sale process and exit Chapter 11 through a plan process. Due to Nikola’s liquidity profile and the anticipated expense of the cases and limited operations in Chapter 11, the company intends to request authority from the court to consummate the sale of its assets on a timeline that balances its liquidity needs with its significant prepetition marketing efforts to best position the company to maximize value for its stakeholders.

“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 North America and developing the HYLA hydrogen refueling highway, connecting Northern California to Southern California,” said Steve Girsky, president and CEO of Nikola, in a statement. “Our customers have accumulated approximately 3.3 million fleet miles across both of our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate.

“In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations,” he continued. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the board has determined that Chapter 11 represents the best possible path forward under the circumstances for the company and its stakeholders.”

Along with financial and legal advisors, Nikola engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow the business to sustain operations. After 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, it shares. Nikola intends to market and sell all, substantially all or a portion of its assets and effectuate an orderly wind down of its businesses.

If approved by the court, the proposed bidding procedures would allow interested parties to submit binding offers to acquire Nikola’s assets, purchased free and clear of Nikola’s indebtedness and certain liabilities. Interest parties could include both strategic and financial buyers, for whom substantial due diligence materials are available.