Fisker Files for Bankruptcy – Implications and Updates

It’s officially official: Fisker has filed for bankruptcy, according to Reuters. This marks a significant moment for the company, which will commence selling its assets and restructuring its debt. This development comes merely four months after owner Henrik Fisker began to signal that potential bankruptcy was on the horizon unless a major original equipment manufacturer (OEM) stepped in with $350 million in funding. Despite rumors suggesting Nissan might be that savior, the company denied any involvement, prompting Fisker to seek alternative solutions.

During this tumultuous time, the factory responsible for building the Ocean announced a production pause. On March 18, Fisker indicated that this halt would last a maximum of six weeks. The company also claimed to have secured up to $150 million in funding, albeit contingent upon certain conditions being met, according to Wired. However, by April, the New York Stock Exchange (NYSE) delisted Fisker, as its shares plummeted by 28 percent. Clearly, the anticipated funding did not materialize, and consequently, the only recourse for Fisker was to file for bankruptcy. The filing occurred in Delaware under Chapter 11 on a late Monday.

According to Reuters, Fisker’s assets are estimated to be between $500 million and $1 billion. Conversely, its liabilities are projected to fall between $100 million and $500 million. This uncertain situation leaves the owners of approximately 10,000 Fisker vehicles in limbo concerning future service and warranty work. Moreover, the fate of 15 U.S. and 12 European dealer locations, as well as the 5,000 vehicle inventory these dealers acquired, remains equally unclear.