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Electric trucking startup Nikola is hoping to sell what stay on of its whole business organisation as betimes as April , lawyers for the company told a judge Thursday during the first hearing of its bankruptcy case in Delaware .
The lawyers claim Nikola already has at least three interested buyer ( who they did not name ) and that the caller hopes to accost other bid , with a entry deadline likely in former March .
If Nikola ca n’t find a purchaser willing to take on the whole occupation , the company will pivot to selling off its assets in piece in an endeavor to satisfy more than $ 1 billion in liability . ( Nikola claims between $ 500 million and $ 1 billion in assets . )
The hearing was held just one day after Nikola filed for Chapter 11 bankruptcy protection and announced it would no longer control as a remain firm - alone business , bringing an remnant to a fellowship that has been plagued with play after its founder Trevor Milton was convicted onmultiple count of security fraud .
Nikola had been trying to sell itself for months , some of the early failure filing and lawyers ’ statements show .
In a sworn declaration , CEO Stephen Girsky said Nikola worked with Goldman Sachs and solicit 22 potential acquirers in the truck manufacturing and transportation logistics spaces . Two “ outside automotivemanufacturers verbalise interest ” in a dealing , according to Girsky . One dropped out . Nikola also exchanged “ various term sheets ” with the other until that party also walked away in recent 2024 .
After that failed , Nikola cultivate with law business firm Houlihan Lokey to beg 24 fiscal investors to “ guess potential involvement in both a standalone investment and an investment alongside a potential strategical married person . ” The feedback , though , was that it would call for too much money to change by reversal Nikola ’s nascent business around , according to Girsky .
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In December 2024 , Nikola wound up in discussions with another “ international vehicle manufacturing society ” about a potential attainment , fail through what Girsky described as “ strong due industry ” over a four - week period of time . But the prospective buyer “ at long last walk away , ” which Girsky noted was a “ dissatisfactory ending . ”
Now in bankruptcy , Girsky severalize the court of justice that Nikola is in “ combat-ready discussions with at least three ” parties concerned in buying the companionship outright , and that they ’re also marketing some of its highest - value asset for possible sales , such as the factory in Coolidge , Arizona .
Chazz Coleman , a attorney representing Nikola in the bankruptcy case , said he expect the case and the sale procedure to be “ uneventful and smooth . ”
Nikola will continue to hook interest until around March 27 , the first propose engagement for a bid submission deadline , Joshua Morse , another attorney represent Nikola , said Thursday . Depending on how that process fit , there could be an auction held around March 31 . A hearing on any potential sales agreement would in all likelihood happen in the second week of April , with the transaction closing shortly after .
Morse also articulate during the hearing that inward interest from potential purchaser has only intensify since the company filed for bankruptcy auspices .
“ It does lean to crystallize the market , ” bankruptcy justice Thomas Horan reply .
There was minimum divergence during the hearing , mostly around the speed of the failure typeface . Nikola wants it to move chop-chop because it only has around $ 47 million in hard cash . Timothy Fox , a tryout lawyer for the U.S. Trustee ’s Office , which oversees failure proceedings , say he wants to verify he has enough sentence to meet with Nikola ’s creditors .
No decision was made during the hearing on timing , but Nikola found support for a speedy procedure from an rum party : a grouping of stockholder that action the company more than four years ago .
The complainant in that case were award class - action at law status just last month , and Nikola jibe to descend the lawsuit shortly before filing for bankruptcy . Those plaintiffs have the fourthly - with child creditor title in Nikola ’s bankruptcy thanks to that settlement , totaling around $ 13 million .
Joe Barsalona , a lawyer representing the class - action plaintiffs , allege Thursday that , give Nikola ’s dwindling cash balance , “ it is imperative to our client that this case move rapidly . ”
“ We conceive it is a melting chicken feed cube , ” Barsalona said .
