Written by Cláudio Afonso | LinkedIn | X
The Austrian subsidiary of the electric vehicle (EV) maker Fisker has encountered claims totaling 1.16 billion euros ($1.242 billion) following its insolvency, according to the local Austrian publication “Industrie Magazin.”
Fisker and its affiliates are moving toward the concluding phase of their Chapter 11 bankruptcy process with the final hearing scheduled for July 16.
The Graz-based unit, responsible for contract manufacturing with Magna Steyr, had only produced 10,000 of the planned 40,000 cars annually.
Credit protection agencies anticipate most claims will remain unresolved, and additional claims may emerge, per the local publication, which adds that restructuring efforts are in progress, contingent on securing an investor.
The proposed plan includes a 30 percent quota payable within two years, to be examined before the August 8 voting hearing. The unit has closed several divisions, reducing its workforce to 20 from 47.
As of June 21, another 58 claims totaling 590.8 million euros ($633 million) were filed, but these have not yet been reviewed due to the complexity and scope of the proceedings, according to the leading credit protection association in Austria named KSV1870.
The local publication added that, since the insolvency, “several divisions of the Austrian subsidiary, specifically “Sales and Services Vienna,” “Back Office,” and “Quality Assurance and Integration,” have been closed by the insolvency court”.
The subsidiary continues to seek restructuring, heavily dependent on attracting an investor. The restructuring plan proposes a 30 percent quota payable within two years after acceptance. The plan’s feasibility will be scrutinized before the August 8 voting hearing, Brigitte Peißl-Schickmair, head of insolvency at KSV1870, told Industrie Magazin.
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On Friday, the company issued a recall of 8,204 Ocean SUVs in the United States due to a defect with the exterior door handles that can cause them to stick and not open, the U.S. National Highway Traffic Safety Administration (NHTSA).
Earlier this month, a group of early adopters of Fisker vehicles announced the formation of a non-profit association, aimed at ensuring continued access to parts and services for owners as the startup filed for bankruptcy protection in Delaware.
As reported on Thursday, the official “Notice of Filing of Creditor Matrix” lists some high-profile names and entities associated with the company’s operations including the founder and CEO Henrik Fisker, and also Geeta Gupta-Fisker, Fisker’s Chief Operating Officer and CFO.
The bankruptcy has triggered an automatic acceleration of its debt obligations under its 2.50% convertible senior notes due 2026, according to a recent 8-k form. There was a scheduled hearing for this later today, June 27, to discuss the cash collateral motion. However, the hearing was canceled.
Fisker is striving to provide a service network to the customers after filing for Chapter 11 bankruptcy protection last week.
According to unofficial information from a Fisker employee, the company is currently operating with a very small team in Germany and has closed its store in the center of Munich.
Written by Cláudio Afonso | LinkedIn | X
