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EV startup Fisker files for bankruptcy, second Henrik Fisker car company to do so
Fisker Group Inc filed for Chapter 11 bankruptcy in Delaware and listed estimated assets of $500 million to $1 billion.
US electric vehicle (EV) maker Fisker filed for bankruptcy after deal talks with a big automaker collapsed as the company deals with the fallout of a rapid cash burn to deliver its Ocean SUV in the United States and Europe. Fisker Group Inc filed for Chapter 11 bankruptcy in Delaware and listed estimated assets of $500 million to $1 billion as well as liabilities between $100 million and $500 million. Fisker's estimated number of creditors are 200-999, as per the court filing.
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The company said, "Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company."
It is also in advanced talks with financial stakeholders for debtor-in-possession financing, the company said.
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Fisker, founded by automotive designer Henrik Fisker, flagged doubts about its ability to remain in business in February. It was later reported that the company was attempting to secure an investment from a big automaker but the talks failed.
This comes as EV makers like Proterra, Lordstown and Electric Last Mile Solutions have also gone bankrupt in the past two years owing to depleting cash reserves, fundraising hurdles and challenges in ramping up production.
