Legal News

Fisker Automotive Inc. Closing in on Bankruptcy
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

The manufacturer of plug-in hybrid sports cars, Fisker Automotive Inc., is preparing to file for bankruptcy protection, according to The Wall Street Journal. The group is based in Anaheim, California and it could file for protection within the next week, according to sources close to the situation.

Of the company’s 200 remaining employees, 150 were dismissed last week in an effort to conserve cash after discussions of a possible sale with two Chinese auto makers fell through. Fisker is still talking about a sale with the companies, which are Zhejiang Geely Holding Group and Dongfeng Motor Group Co.

  
What
Where


There is an April 22 deadline for Fisker to make a loan payment to the United States Department of Energy. Under the department’s Advanced Technology Vehicles Manufacturing Loan Program, the company is roughly $192 million in debt.

Should the company enter bankruptcy, the DOE would be the senior creditor of Fisker and would have a huge say in the sales process or financial restructuring of the company.

The first plug-in hybrid Karma model hit the market in late 2011. The company’s problems began well before the first vehicle hit the streets, when the government declined to give the company a $529 million loan package after it fell behind on financial benchmarks for a second plug-in hybrid car.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The company has not produced a car since July. Fisker’s battery supplier, A123 Systems Inc. filed for bankruptcy protection and was bought by Wanxiang Group Inc.





 

RELEVANT JOBS

Commercial Bankruptcy Associate

USA-NC-Winston Salem

Our Bankruptcy Team is searching for an associate with at least three years of bankruptcy experience...

Apply now

Commercial Bankruptcy Associate

USA-NC-Raleigh

Our Bankruptcy Team is searching for an associate with at least three years of bankruptcy experience...

Apply now

Staff Attorney - Municipal

USA-CA-Agoura Hills

Staff Attorney, Responsibilities: Provide legal support and guidance  Advise clients on...

Apply now

Senior Family Law Attorney

USA-CA-Cupertino

Senior Family Attorney, Responsibilities: Draft and complete declarations of disclosure as req...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top