Nikola Corp. Files Voluntary Petitions Under Chapter 11; To Pursue Auction, Sale Under Section 363

(RTTNews) - Nikola Corporation (NKLA) announced that the company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company has also filed a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.S. Bankruptcy Code.

The company determined that a structured sale process represents the best possible solution to maximize the value of its assets. Nikola plans to market and sell all, substantially all, or a portion of its assets and effectuate an orderly wind down of its businesses.