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Hybrid,
Government/Legal,
Fisker
Fisker Automotive looks to be headed towards
bankruptcy protection.
Automotive News reports the automaker could file Chapter 11 as soon as this week as the
US Department of Energy attempts to get the company to give back around $200 million in federal loans. The manufacturer's lawyers have already drawn up the necessary paperwork and are ready to file within the next few days, according to an unnamed source. The DoE is pushing Fisker toward bankruptcy after months of bickering between the two parties. Fisker had been courting buyers in both China and Europe in an attempt to stay solvent, but failed to bring in the necessary funds.
As a result, Fisker hasn't built a single vehicle since last summer, and no one has stepped up to buy any more of the $100,000 hybrid vehicles. Last Friday, the company laid off some 75 percent of its workforce in the US, leaving only around 50 executives behind to avoid breaching its contract with the DoE. Right now, the company has around $30 million in cash on hand and is staring down the barrel of a $10 million DoE loan payment in a few weeks.
Fisker could file Chapter 11 as soon as this week originally appeared on
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Report: Fisker could file Chapter 11 as soon as this week
