Electric truck manufacturer Nikola closer to the bankruptcy report, WSJ reports (February 6)
(This story of February 6 was corrected to clarify that Nicholas made only one reverse part of the stock, not multiple, in paragraph 11. And in the previous versions of the story)
(Reuters) – Nikola’s electric truck manufacturer is approaching a bankruptcy application, Wall Street Journal reported on Thursday, referring to people who are familiar with the issue.
The company’s shares have fallen by 20% at 60 cents in extended trading.
Phoenix, Nicholas based in Arizona, has collaborated with the law firm Pillsbury Winthrop Shaw Pittman to investigate options, including the sale or restructuring of a bankrupt company, the report said.
The company is fighting for funds to raise, and its cash balance has decreased because it still loses hundreds of thousands of dollars for each unit sold.
Nikola said on Thursday that he was evaluating various opportunities, including financing as part of financial restructuring.
However, the company refused to comment on whether it explored the bankruptcy proceedings.
Pillsbury Winthrop Shaw Pittman did not immediately respond to Reuters’ comment request.
Electric truck manufacturer explored options, including the sale of parts of his business or the entire company, Bloomberg News reported last month.
Nikola’s cash and cash equivalents fell to $ 198.3 million in late September, compared to $ 464.7 million at the end of 2023.
His shares lost more than 99% of their value from the public in 2020.
The shares have repeatedly fallen below $ 1, and the company resorted to the split of the reverse stock last year to adhere to the Nasdaq listing rules.
(Reporting Akash I hide in Bengalur; Mounting Shilpi Majumdar and Shounak Dasgupta)
