Electric truck startup Nikola is seeking to sell its entire business by April as part of its Chapter 11 bankruptcy proceedings, company lawyers told a Delaware judge on Thursday.
Nikola, which filed for bankruptcy protection this week, has already attracted interest from at least three potential buyers, the lawyers said, without disclosing names. The company plans to solicit additional bids, with a submission deadline expected in late March.
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Should a full sale prove unsuccessful, Nikola intends to sell off assets individually to address more than $1 billion in liabilities. The company reported assets ranging between $500 million and $1 billion.
CEO Stephen Girsky stated in a court filing that Nikola had worked with Goldman Sachs to approach 22 potential acquirers in the truck manufacturing and logistics sectors. Two international automakers expressed interest, but both withdrew, the last in late 2024.
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Nikola then engaged financial advisory firm Houlihan Lokey to explore investment opportunities, contacting 24 financial investors. However, investors were deterred by the capital required to turn the business around, according to Girsky.
In December, Nikola entered discussions with another international vehicle manufacturer for a potential acquisition, undergoing what Girsky described as “substantial due diligence” over four weeks. That party also ultimately backed out.
Now in bankruptcy, Nikola remains in “active discussions” with at least three potential buyers and is marketing high-value assets such as its Coolidge, Arizona, factory.
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“We expect the case and the sale process to be uneventful and smooth,” Nikola attorney Chazz Coleman told the court.
Joshua Morse, another attorney representing Nikola, said the company expects to set March 27 as the bid submission deadline, with a possible auction around March 31. A sale hearing could take place in the second week of April, with the transaction closing soon after.
Nikola has just $47 million in cash, prompting calls for an expedited sale process. The urgency was echoed by plaintiffs in a class-action lawsuit against the company, who recently secured a $13 million settlement and are among Nikola’s largest creditors.
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“It is imperative to our client that this case move rapidly,” said Joe Barsalona, a lawyer representing the class-action plaintiffs. “We believe it is a melting ice cube.”