Fisker files for Chapter 11 bankruptcy
More than a dozen U.S. dealerships from New Jersey to California agreed to retail electric vehicles from Fisker Group since the manufacturer hosted an open house in late January.
Those plans might be moot as the company announced that it filed for Chapter 11 protection in the District of Delaware.
According to a news release sent just after 2 a.m. (ET) Tuesday, Fisker said it is in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets.
“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” a Fisker spokesperson said in the news release. “We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American and Europe.
“But 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,” the spokesperson continued.
Fisker’s previously announced that manufacturing pause will remain in place, according to the company.
Fisker said intends to file certain customary motions with the bankruptcy court to ensure its reduced operations are able to continue, including paying employee wages and benefits, preserving certain customer programs, and compensating needed vendors on a go-forward basis.
Fisker Inc. and other U.S. subsidiaries, as well as subsidiaries outside the U.S., are not included in the Chapter 11 filing at this time.
Fisker is represented by Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting Group as restructuring advisor.