Fisker Automotive Expected to File Chapter 11 Bankruptcy This Week
April 10, 2013 8:52 AM
comment(s) - last by
Fisker's attorneys have already drawn up bankruptcy papers
It's clear that Fisker Automotive has been struggling, and we may see the result of that struggle as early as this week when the automaker is expected to file for Chapter 11 bankruptcy.
According to Reuters, Fisker's attorneys have already drawn up bankruptcy papers and will file within the next few days.
The automaker's board of directors will talk their options over at a meeting today and make a decision regarding the Chapter 11 filing's timing.
Fisker's upcoming bankruptcy filing comes as no surprise, considering the company has been in a rut ever since its federal loans from the U.S. Department of Energy (DOE) were frozen back in 2011.
In April 2010, Fisker received $529 million in
progress development of high-tech vehicles. However, Fisker fell a little behind on its production schedule, and in May 2011,
DOE froze the loans due to "unmet milestones."
Fisker had only drawn $193 million of it at that point.
Due to these frozen loans, Fisker is having a hard time securing funds to make its second car -- the Fisker Atlantic. Fisker is now looking for investors to help out financially, but the company's investor solution has drawn a lot of criticism because two potentials have been Chinese companies -- Zhejiang Geely Holding Group and Dongfeng Motor Group Co. This is seen as an issue because Fisker received U.S. taxpayer dollars to fund its Karma plug-in.
The Karma itself has had to be recalled in the past too, as battery supplier A123 Systems (which
last year and was later
acquired by Chinese firm
Wanxiang Group for about $260 million) vowed to replace nearly 600 Karma batteries for $55 million in 2012.
Last month, things started getting worse for Fisker when Henrik Fisker, who co-founded Fisker Automotive in 2007,
stepped down as executive chairman
citing "several major disagreements" with "Fisker Automotive executive management on the business strategy."
Only weeks ago, the company was forced to
put its U.S. workers on furlough
to try and keep costs down while it searches for an investor. This means that the U.S. workforce had a temporary, unpaid leave until the company got back on its feet.
However, Fisker employment took a much bigger hit earlier this week when
it laid off 75 percent of its workforce
(or about 160 employees). As if this wasn't bad enough, Fisker is now facing a federal lawsuit that accuses the company of not giving employees advanced notice of the mass layoffs. Under the U.S. Worker Adjustment and Retraining Notification Act, workers are supposed to have 60 days notice before being laid off.
Fisker Automotive is expected to make a loan payment to the DOE on April 22.
This article is over a month old, voting and posting comments is disabled
RE: Gross incompetency
4/10/2013 9:37:09 AM
Fisker had only drawn $193 million of it
No doubt the executives received nice salaries, bonuses, and will receive a nice severance package. Of course the lawyers have to get paid. The fact that they outsourced so much leads me to believe they had no intention of forming a viable company from the start.
RE: Gross incompetency
4/10/2013 9:55:28 AM
I think you're on to something.
Wasn't there a similar lib vote getting project that involved solar panels or something like that?
RE: Gross incompetency
4/10/2013 9:57:56 AM
Shhh......keep that on the down low.
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
Fisker Automotive Lays Off 75 Percent of Staff, Catches a Federal Lawsuit
April 8, 2013, 12:17 PM
Fisker Automotive Forced to Put U.S. Employees on Furlough
March 28, 2013, 12:16 PM
Fisker Automotive's Executive Chairman Resigns
March 13, 2013, 5:25 PM
Battery Maker A123 Systems Acquired by Chinese Firm for $260M
December 10, 2012, 8:10 AM
House Committee Looks into Terms of DOE's Fisker Automotive Loans
October 23, 2012, 2:50 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Quick Note: GM Teases Next Generation Chevrolet Volt
November 20, 2014, 3:26 PM
Most Popular Articles
Windows 10 Build 10061: A Quick Review
April 27, 2015, 10:57 AM
Ding Dong the Deal is Dead: What's Next After Failed Comcast/TWC Merger
April 28, 2015, 2:06 PM
Report: Apple Pulls the Plug on Apple Watch Store Launch
April 16, 2015, 3:18 PM
Quick Note: Lady Macbath -- One Japanese Woman's Apple Themed Revenge
April 23, 2015, 11:47 AM
After Record-Setting Week, Samsung Predicts 70 Million GS6/GS6 Edge Sales
April 17, 2015, 8:39 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information