Written by Cláudio Afonso | LinkedIn | X
On late Monday, the electric vehicle maker Fisker announced that Fisker Group Inc., the operating subsidiary of Fisker Inc., filed for Chapter 11 protection in the District of Delaware on June 17.
By then, the electric vehicle startup said that Fisker Inc. and other U.S. subsidiaries, as well as subsidiaries outside the U.S., were “not included in the Chapter 11 filing” at the time.
The company led by the automotive designer Henrik Fisker said in a statement on Wednesday that now, also Fisker Inc. and its other U.S. subsidiaries have entered into Chapter 11 while adding that the “company’s discussions regarding the sale of its assets remain ongoing”.
In a new statement, the company said, “Following on the announcement that Fisker Group Inc. filed for Chapter 11 protection in the District of Delaware, Fisker Inc. and its other U.S. subsidiaries have entered into Chapter 11. The Company’s discussions regarding the sale of its assets remain ongoing”.
Henrik Fisker, is set to speak at the Economic Times Auto Summit for the first time on Thursday, June 20.
Shares of electric vehicle maker Fisker plummeted 54 percent on the OTC market on Tuesday to $0.0205 and bringing year-to-date losses to nearly 99 percent.
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On Monday, the company stated that “faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently”.
The bankruptcy filing revealed earlier this week that Fisker’s assets are valued between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million. This filing provides Fisker with protection from creditors as it formulates a plan to repay its debts.
Over the last months, Fisker was taking drastic measures to avoid bankruptcy, including significant workforce reductions. A major layoff was recently announced to U.S. employees and was swiftly extended to Canadian operations, leaving the company with a minimal staff.
On March 18, the EV startup reported having approximately 4,700 vehicles in inventory as demand didn’t meet the management expectations in 2023.
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Further compounding Fisker’s financial challenges, an 8K form filed two weeks ago revealed that the company had defaulted on its senior secured note due in 2024.
The company announced last week that it is issuing two voluntary recalls affecting more than 11,000 vehicles in North America and Europe due to software-related issues.
Written by Cláudio Afonso | LinkedIn | X
