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Electrical-truck maker Nikola Corp. filed for Chapter 11 chapter safety on Wednesday after the corporate failed to beat market and macroeconomic challenges.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” CEO Steve Girsky stated in an announcement.
Girsky stated the corporate has taken “numerous actions” to lift capital, scale back liabilities, clear up its steadiness sheet and protect money to maintain operations in latest months, but it surely wasn’t sufficient to beat the “significant challenges” the corporate had been going through. He stated that submitting for chapter safety was the “best possible path forward” for the corporate and its stakeholders.
Ticker Safety Final Change Change % NKLA NIKOLA CORP. 0.77 +0.22
+41.44%
As of Wednesday, Nikola has round $47 million in money to maintain issues operating whereas it tries to dump belongings and reorganize. The corporate can be looking for courtroom approval to promote its belongings shortly to ensure it has sufficient cash to cowl prices throughout the chapter course of.
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