Electric truck maker Nikola Corporation and its subsidiaries have filed a motion seeking court approval for bidding procedures to sell substantially all of their assets through a Chapter 11 bankruptcy process. The motion was filed on February 19, 2025, in the U.S. Bankruptcy Court for the District of Delaware (Case No. 25-10258-TMH).
The Phoenix-based company, which manufactures zero-emissions commercial vehicles including battery-electric and hydrogen fuel cell electric trucks, is working with investment banker Houlihan Lokey Capital to market its assets. The proposed timeline calls for potential stalking horse bidders to be designated by March 10, with final bids due by March 27 and an auction, if necessary, to be held on March 31.
According to the filing, Nikola has already engaged in extensive marketing efforts prior to the bankruptcy filing, with Houlihan Lokey reaching out to 24 potential financial investors. The company is currently in active discussions with at least three parties interested in a potential going-concern transaction.
The motion outlines procedures for potential bidders, including requirements for due diligence, qualified bids, and potential stalking horse protections that could include break-up fees of up to 3% of the qualified bid amount and expense reimbursements up to $400,000.
Nikola is represented by Potter Anderson & Corroon LLP as Delaware counsel and Pillsbury Winthrop Shaw Pittman LLP as lead counsel in the bankruptcy proceedings.
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Link: Debtors' Motion for Entry of Orders (I)(A) Approving Bidding Procedures for the Sale of Substantially All of the Debtors' Assets... (50 pages)