The electric truck manufacturer Nikola is approaching the bankruptcy registration, reports WSJ

(Reuters) -Lectric -Truck Maker Nikola approaches to apply for bankruptcy, the Wall Street Journal reported on Thursday, citing people who are familiar with the matter.

The company’s shares fell by 20% to 60 cents in extended trade.

Nikola, based in Arizona in Arizona, worked with the Pillsbury Winthrop Shaw Pittman law firm to explore options, including a sale or restructuring of the company, as the report shows.

The company has difficulty collecting donations and its cash credit has decreased because it continues to lose hundreds of thousands of dollars for every unit sold.

Nikola said on Thursday that it rated a variety of options, including financing in the context of a financial restructuring.

However, the company refused to comment on whether it was investigating bankruptcy proceedings.

Pillsbury Winthrop Shaw Pittman did not immediately answer a Reuter’s request for comments.

The electro-truck manufacturer explored options, including the sale of parts of its business or the entire company, reported Bloomberg News in the past month.

At the end of September, Nikola’s bar and cash equivalents went back to 198.3 million US dollars, compared to USD $ 464.7 million in late 2023.

The stocks have lost more than 99% of their value since they went to the stock exchange in 2020.

The share has fallen under the 1-mark brand several times, and the company has used several reverse equity sticks to meet the listing rules of Nasdaq.

(Because of Sriram von Begrulu;