Electric vehicle maker Fisker is reportedly headed for liquidation after filing for Chapter 11 bankruptcy last week.
Fisker made the announcement June 17th, saying it was in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets. The announcement came after Fisker went through a lot of its cash trying to ramp up production of the Ocean EV crossover.
On the 19th, Fisker announced that Fisker Inc. and its other U.S. subsidiaries had also entered into Chapter 11, saying added that discussions regarding the sale of its assets remained ongoing.
The original plan was for Fisker to seek financing and continue 'reduced operations'. But that doesn't look likely, at least according to what a Fisker attorney told a bankruptcy Judge Friday. As reported in Automotive News, the attorney told the Judge that the automaker doesn't "currently anticipate being able to obtain financing" and instead plans to liquidate its assets. The automaker's attorney also told the Judge that Fisker has reached a tentative deal with a single buyer for all of its 4,300 vehicles.
The situation gets even messier, with two shareholder groups battling it out over who will be paid first.
This marks the second time an automaker founded by Henrick Fisker has filed for bankruptcy. The first was the original Fisker Automotive - behind the celebrity-beloved Karma, one of the world's first luxury production plug-in hybrids The automaker went bankrupt in 2013 after facing multiple challenges including cash flow and regulatory issues, a recall and Superstorm Sandy. 338 Karmas at a New Jersey port were destroyed in the storm, to the tune of more than $33 million in losses. (Fisker reached an undisclosed out-of-court settlement with its insurance company. )
In 2016, Fisker launched a new company, simplified as Fisker, Inc.. Henrick Fisker is a former chief designer of Aston Martin.
Photo: Fisker.