Electrical-truck maker Nikola nears chapter submitting, WSJ experiences

(Reuters) -Electrical-truck maker Nikola is nearing submitting for a chapter, the Wall Avenue Journal reported on Thursday, citing folks acquainted with the matter.

The corporate’s shares fell 20% to 60 cents in prolonged buying and selling.

Phoenix, Arizona-based Nikola was working with regulation agency Pillsbury Winthrop Shaw Pittman to discover choices together with a sale or restructuring of the corporate in chapter, in line with the report.

The corporate has been struggling to boost funds and its money steadiness has dwindled because it continues to lose lots of of hundreds of {dollars} for each unit bought.

Nikola stated on Thursday it was evaluating quite a lot of choices, together with a financing as a part of a monetary restructuring.

Nevertheless, the corporate declined to touch upon whether or not it was exploring chapter proceedings.

Pillsbury Winthrop Shaw Pittman didn’t instantly reply to a Reuters request for remark.

The electrical-truck maker was exploring choices, together with promoting components of its enterprise or your entire firm, Bloomberg Information reported final month.

Nikola’s money and money equivalents fell sharply to $198.3 million on the finish of September, in contrast with $464.7 million on the finish of 2023.

Its shares have misplaced greater than 99% of their worth since going public in 2020.

The inventory has fallen under the $1-mark a number of occasions and the corporate resorted to a number of reverse inventory splits to adjust to Nasdaq’s itemizing guidelines.

(Reporting by Akash Sriram in Bengaluru; Enhancing by Shilpi Majumdar and Shounak Dasgupta)