Written by Cláudio Afonso | LinkedIn | X
Fisker GmbH, the Austrian subsidiary from the troubled electric vehicle (EV) maker Fisker, has filed a revised restructuring plan with the Landesgericht Graz amid ongoing Chapter 11 process.
The Graz-based unit from Magna Steyr, responsible for contract manufacturing all the Fisker Ocean vehicles, has only produced 10,000 of the planned 40,000 cars annually.
The revised plan aims to offer its creditors a reduced settlement after the company admitted unexpected increases in liabilities and setbacks in securing investor support.
Fisker GmbH originally proposed a restructuring plan on May 7, suggesting that creditors receive 30% of their claims over two years, contingent on the company’s self-administration and potential investor support from Fisker US.
However, liabilities surged from the anticipated €1.376 billion ($1.49 billion) to approximately €3.7 billion ($4 billion) due to additional claims, including significant damage compensation demands and a substantial claim from a financier of Fisker US.
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Efforts to secure a new investor were hampered by the ongoing Chapter 11 proceedings involving Fisker US in the USA, complicating negotiations. The insolvency filings of several Fisker Group entities across Europe further diminished the value of intercompany claims. Operational disruptions, including a sales stop on vehicles pending necessary checks, prevented revenue generation from sales.
The subsidiary proposes now a 20% cash settlement to creditors, payable within two weeks of the restructuring plan’s court approval.
The success of this plan depends on agreements from the company’s three largest creditors: CVI Investments Inc., the Magna Group, and Fisker Group Inc.
The plan requires submission of specific declarations by these major creditors by September 15, to ensure no new insolvency proceedings are initiated against Fisker GmbH, the Austrian subsidiary.
The plan must be confirmed by the court only after all required declarations are submitted. Additionally, Fisker GmbH has requested the termination of its self-administration as part of this revised plan.
Written by Cláudio Afonso | LinkedIn | X
