Nikola, Startup from Electric Trucking, hopes to sell what remains of his entire company in April, the company’s lawyers informed a judge on Thursday during the first hearing of the bankruptcy proceedings in Delaware.
The lawyers claimed that Nikola already had at least three interested buyers (which they did not name) and the company hopes to obtain other offers, although a submission period is likely to be made at the end of March.
If Nikola cannot find a buyer who is willing to take over the entire company, the company will use the sale of its assets to pieces to satisfy more than 1 billion US dollars in liabilities. (Nikola claims between $ 500 million and 1 billion US dollars.)
The hearing only took place one day Several counts of securities fraud.
Nikola had tried to sell herself for months, show some of the early bankruptcy information and lawyers.
In a swore explanation, CEO Stephen Girsky said that Nikola worked with Goldman Sachs and submitted 22 potential buyers in the rooms for truck production and transport logistics. Two “international automobiles
The manufacturers were interested in a transaction, According to Girsky. One fell. Nikola also exchanged “different runtime sheets” with the other until this party also went away at the end of 2024.
Afterwards, Nikola failed with the Houlihan Lokey law firm to demand 24 financial investors “to measure the potential interest in an independent investment and an investment alongside a potential strategic partner”. However, the feedback was that according to Girsky, it would require too much money to turn Nikola’s up -to -date business.
In December 2024, Nikola landed in discussions with another “international vehicle manufacturing company” about a potential acquisition that described as a “extensive duty of care” over a period of four weeks. But the potential buyer ultimately “gone away”, which Girsky found, was a “disappointing conclusion”.
Now in bankruptcy, Girsky informed the court that Nikola is “active discussions with at least three” parties who are interested in buying the company immediately Coolidge, Arizona.
Chazz Coleman, a lawyer who represents Nikola in the event of bankruptcy, said that he expects the case and the sales process to be “uneventful and smooth”.
Nikola will continue to obtain interest by March 27, the first proposed date for a submission period, Joshua Morse, another lawyer who represents Nikola, said on Thursday. Depending on how this process runs, an auction could take place on March 31. A hearing for a potential sale would probably take place in the second week of April, with the transaction closing shortly afterwards.
Morse also said during the hearing that incoming interest from potential buyers had only escalated since the company submitted bankruptcy protection.
“It tends to crystallize the market,” the insolvency judge Thomas Horan replied.
During the hearing there were minimal disagreements, mainly at the speed of bankruptcy. Nikola wants it to move quickly because it only has around 47 million US dollars in cash. Timothy Fox, a process lawyer of the US trustee who monitors the bankruptcy proceedings, said he wanted to make sure that he has enough time to meet Nikola’s creditors.
No decision was made during the hearing about the timing, but Nikola found support for a fast process of an ODD party: a group of shareholders who sued the company more than four years ago.
In this case, the plaintiffs only received the collective suit in the last month, and Nikola agreed to pay the lawsuit shortly before registering bankruptcy. Thanks to this settlement, these plaintiffs have the fourth largest claim in Nikola’s bankruptcy position of around $ 13 million.
Joe Barsalona, a lawyer who represents the plaintiff’s collective suits, said on Thursday, given Nikola’s dwindling cash balance, “it is essential for our client that this case moves quickly.”
“We believe that it is a melting ice cube,” said Barsalona.
