Nikola Corp. and its Hyla hydrogen fueling subsidiary have filed for Chapter 11 bankruptcy protection in the U.S. and will seek to sell itself.
It will continue limited operations during the process, the company said in a release, including supporting trucks already in the field and their related fueling stations through the end of March.
It will require one or more partners to continue supporting such activities beyond then, it announced.
“With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emission 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.
“Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV (battery-electric) 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. 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.”
The company has US$47 million in cash on hand to fund ongoing activities, including implementing a sales process. It claims it spent months seeking alternatives that would allow it to continue operations before deciding a structured sales process would provide the best possible outcome to maximize 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 company said.
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