By Colin Kellaher
Nikola, the hydrogen-truck maker that briefly sported a market value comparable to Ford Motor, has filed for bankruptcy with plans to wind down its business.
Nikola on Wednesday said it made the chapter 11 filing with the U.S. Bankruptcy Court in Delaware and that it plans to conduct a court-supervised auction of its assets.
The Phoenix company said it worked for months with its financial and legal advisers to find a way to sustain its operations before determining that a structured sale process was the best way to maximize the value of its assets.
Nikola said it enters chapter 11 with about $47 million in cash on hand, adding that it plans to continue to provide certain service and support operations for trucks currently in the field through the end of March, after which it would need the support of one or more partners.
Nikola shares were recently up 5.9% to 81.1 cents in premarket trading.
However, shareholders are generally wiped out in bankruptcy cases, and Nikola warned that it expects its security holders could see a significant or complete loss on their investment, depending on the outcome of the bankruptcy case.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 19, 2025 08:02 ET (13:02 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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