Investor FAQ
PHOENIX – February 19, 2025 – Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy supply and infrastructure solutions, via the HYLA brand, today announced that the Company 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 has also filed a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code.
CHAPTER 11 FAQS
- Nikola announced that the company 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.
- This will enable the company to restructure its debt and implement an orderly wind down of the business, while conducting a structured process to solicit interest in the sale of all, substantially all, or a portion of its operations.
- Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate.
- We have taken numerous actions in recent months to raise capital, reduce liabilities, strengthen our balance sheet and preserve cash to sustain operations. Unfortunately, these efforts were not sufficient to overcome the current challenges. Nikola’s Board of Directors has determined that Chapter 11 is the best possible path forward for the company and its stakeholders.
- We are actively working through the Chapter 11 process, but at this point it is too early to provide a firm timeline, which depends on several variables, including negotiations with creditors and potential asset sales.
- We are committed to resolving this as efficiently as possible. The best place to find information about the case is at https://dm.epiq11.com/Nikola.
- The treatment of Nikola stock and any stock-based compensation is still under review throughout the Chapter 11 case. Stockholders will be paid / compensated only after it is deemed there is sufficient value to pay off all the company’s creditors. Creditors and other claimants will be paid first, and any remaining funds would then go to shareholders.
- The best place to find information about the case is at https://dm.epiq11.com/Nikola.
• If the company or a portion of the company is sold as part of the Chapter 11 process, the distribution of sale proceeds will follow the bankruptcy priority rules. Creditors and other claimants will be paid first, and any remaining funds would then go to shareholders. Shareholders will not receive a payout if the sale proceeds are insufficient to cover all debt obligations.
• The best place to find information about the case is at https://dm.epiq11.com/Nikola.