Nikola Motors, the electric trucking startup plagued by drama and financial woes, is seeking a buyer for its entire business as it files for Chapter 11 bankruptcy protection. According to lawyers for the company, Nikola hopes to sell its business as early as April, with at least three interested buyers already in talks.

The news comes just a day after Nikola filed for bankruptcy protection, announcing it would no longer operate as a standalone business. The company claims to have between $500 million and $1 billion in assets, but is saddled with over $1 billion in liabilities. If a buyer for the entire business cannot be found, Nikola will pivot to selling off its assets in pieces to satisfy its creditors.

Nikola's journey to bankruptcy has been a long and tumultuous one. The company's founder, Trevor Milton, was convicted on multiple counts of securities fraud, and the company has been trying to sell itself for months. According to CEO Stephen Girsky, Nikola worked with Goldman Sachs to solicit 22 potential acquirers in the truck manufacturing and transportation logistics spaces, but ultimately failed to secure a deal.

In a sworn declaration, Girsky revealed that two international automotive manufacturers expressed interest in a transaction, but one dropped out and the other walked away in late 2024. Nikola then worked with law firm Houlihan Lokey to solicit 24 financial investors, but the feedback was that it would require too much money to turn the company's nascent business around.

In December 2024, Nikola entered into discussions with another international vehicle manufacturing company about a potential acquisition, but the prospective buyer ultimately walked away. Now, in bankruptcy, Girsky claims the company is in "active discussions" with at least three parties interested in buying the company outright, and is also marketing some of its highest-value assets for possible sales, such as its factory in Coolidge, Arizona.

Lawyers for Nikola expressed confidence that the sale process would be "uneventful and smooth," with a bid submission deadline proposed for March 27 and a potential auction held around March 31. A hearing on any potential sale would likely take place in the second week of April, with the transaction closing shortly after.

The bankruptcy judge, Thomas Horan, noted that the filing for bankruptcy protection has "crystallized the market" and escalated interest from potential buyers. However, there was some disagreement during the hearing regarding the speed of the bankruptcy case, with Nikola pushing for a quick resolution due to its dwindling cash balance of around $47 million.

In a surprising turn, a group of shareholders that sued Nikola over four years ago expressed support for a speedy process, citing the company's dwindling cash balance as a "melting ice cube." The plaintiffs, who were granted class action status last month and agreed to settle the lawsuit shortly before Nikola's bankruptcy filing, have the fourth-largest creditor claim in the bankruptcy case, totaling around $13 million.

As the sale process unfolds, the fate of Nikola Motors and its electric trucking ambitions hangs in the balance. Will the company find a buyer willing to take on its entire business, or will its assets be sold off piecemeal to satisfy its creditors? Only time will tell.