The US company, which developed electric and hydrogen-powered trucks, has filed for Chapter 11 bankruptcy protection and is preparing to sell its assets. Following Hyzon*, another pioneer in hydrogen-powered heavy-duty vehicles has collapsed. However, major players like Iveco, Daimler, and Volvo remain in the race.
Nikola and several of its subsidiaries have voluntarily filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. The parent company has also requested court approval to proceed with an auction and sale process under Section 363 of the U.S. Bankruptcy Code.
The manufacturer has committed to meeting its obligations to employees throughout the sale process. Subject to court approval, Nikola also plans to maintain limited live service and support operations for its trucks currently on the market, including certain fuelling activities of its HYLA subsidiary, until the end of March. Beyond that, the company will need one or more partners to sustain these operations.
“Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen,“ says Steve Girsky, President of Nikola. He adds, “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.”
*Hyzon is currently seeking shareholder approval for its Plan of Dissolution at an Extraordinary General Meeting scheduled for 27 February 2025.
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