Dispensable electrical truck makers for bankruptcy

Nikola Corp, which launches Nikola Corp Chapter 11 Banking protection Wednesday, after failing to find a buyer or secure additional money to keep the operations.

Nicola was once my beloved Silicon Valley, at a value of $ 30 billion in June 2020 after that Open By integrating the acquisition of the special purpose. But a series of scandals surrounding its founder and former CEO, Tiffur Milton, put the company in the free fall.

Now, Nicolas plans to go to an auction with its assets, pending the approval of the court, according to an organizational report.

“Like other companies in the electric car industry, we have faced many economic factors in the market and the macroeconomic economy that affected our ability to work,” Steve Jersaki, President and CEO of Nicolas said in a statement.

“In recent months, we have taken many measures to raise capital, reduce our obligations, clean our public budget and maintain cash to maintain our operations. Unfortunately, our best efforts were not enough to overcome these important challenges, and the Board of Directors decided that Chapter 11 represents the best path It is possible to forward under the conditions of the company and the stakeholders.

The company owns about $ 47 million in hand to finance the bankruptcy process. The proposed bids for Nikola will allow the parties to submit binding offers to obtain Nikola assets, regardless of the company’s debts or obligations.

Some of these assets will include electric trucks for hydrogen fuel in Nicolas, Nicolas and Electric truck platforms. Nicolas was also developing a fuel highway in Hila in California.

Bankruptcy files over the years. Nicola was a golden example on Spac, and she closed a deal with billions of dollars with General Motors. Milton was accused of defrauding exaggerated claims about the company’s electrical technology.

Prosecutors in the case against Milton claimed that he deceived investors since 2019 by lying about Nicolas after he built a “land” truck and the development of batteries that were already purchased elsewhere.

Then there was A notorious Nikola marketing video This shows a truck that appears on its own power. In fact, he was rolling over a hill.

After that video, a report from the Hindenburg Compane research seller described it as fraud, and Milton was seized in September 2020. He was convicted of fraud in wires and securities in 2022. He is currently outside the guarantee while resuming Four years prison sentence.

Nicolas at the end a 125 million dollars a penalty In a settlement with the American Securities and Stock Exchange Committee. The shares of the company collapsed, which led to serious losses to investors, as well as the company.

Nicola has been trying to collect enough capital to continue the operations since then. Recently, in December 2024, Nicolas tried to do so Baccalanciously $ 100 million In the sale of joint shares to pay their debts and increase the shares, after warning the investors a month before during a call of its profits in the third quarter, which the company had only enough money to support its business in the first quarter of 2025.

Nicolas recorded $ 198 million in cash at the end of the third quarter.