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Fisker Group Inc., a subsidiary of Fisker Inc., has filed for Chapter 11 protection in Delaware. The company is in advanced discussions regarding debtor-in-possession financing and plans to sell its assets. Key operations will continue under court approval.
Key Highlights
- Chapter 11 Filing: Fisker filed for bankruptcy protection on June 17, 2024, in the District of Delaware.
- Debtor-in-Possession Financing: The company is negotiating with financial stakeholders for financing during the bankruptcy process.
- Asset Sale: Fisker plans to sell its assets as part of its restructuring efforts.
A Fisker spokesperson stated, “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. 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.”
Ongoing Operations
- Manufacturing Pause: The previously announced pause in manufacturing will continue.
- Bankruptcy Court Motions: Fisker plans to file motions to ensure continuity of reduced operations, including:
- Paying employee wages and benefits.
- Preserving customer programs.
- Compensating essential vendors.
Legal and Advisory Support
- Legal Advisors: Fisker is represented by Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP.
- Restructuring Advisor: Huron Consulting Group.
About Fisker Inc.
Fisker Inc., based in California, aims to revolutionize the automotive industry by designing and developing sustainable electric vehicles. The company is committed to creating environmentally friendly and emotionally appealing vehicles. For more information, visit Fiskerinc.com.
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