Fisker Automotive Expected to File Chapter 11 Bankruptcy This Week
April 10, 2013 8:52 AM
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.
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
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
Dubai announces passenger drone plans.
February 14, 2017, 7:56 AM
Lucky LA Residence
January 28, 2017, 4:00 AM
Debuted at CES 2017 - Corning Gorilla Glass Concept Car
January 7, 2017, 3:02 AM
Happy, healthy and feastive New Year to you and everyone in the world that about to celebrate the Season Holidays
January 1, 2017, 12:01 AM
In 2017, Here are the New Autos of 2018
December 30, 2016, 5:00 AM
What Happens When You Put a Blind Man in a Driverless Car?
December 14, 2016, 5:00 AM
Most Popular Articles
Android Instant Tethering Only Works for Pixel and Nexus Handsets
February 13, 2017, 7:30 AM
New iMac and Release Date
February 4, 2017, 9:30 AM
Intel Core vPro – Upgrade to 4 GHz Business Class
February 13, 2017, 6:41 AM
LG G6 – The Latest Flagship Smartphone by LG for 2017
February 14, 2017, 7:05 AM
HP Spectre x360 – 4K Brilliance and Long Battery Life
February 11, 2017, 7:22 AM
Latest Blog Posts
Around the World
Feb 18, 2017, 5:48 AM
News of Future
Feb 17, 2017, 6:30 AM
Amazon parachutes May Float Packages to Customers
Feb 16, 2017, 8:00 AM
Now you Can Watch Facebook on Your TV
Feb 15, 2017, 7:42 AM
Feb 14, 2017, 5:36 AM
Razer Blade Stealth – Little Kaby Lake Powerhouse
Feb 13, 2017, 7:50 AM
Android 7.0 Nougat 7.0 Update Bring Less Battery Life for Samsung Galaxy S7 & S7 Edge
Feb 12, 2017, 7:45 AM
Apple iPhone 8 – OLED Display & Wireless Charging
Feb 11, 2017, 8:09 AM
Feb 10, 2017, 6:15 AM
Feb 9, 2017, 6:00 AM
Eye catching news
Feb 8, 2017, 6:16 AM
Some World News
Feb 7, 2017, 6:15 AM
Feb 6, 2017, 10:11 AM
Feb 5, 2017, 7:27 AM
Notes and News
Feb 4, 2017, 5:53 AM
Feb 3, 2017, 5:30 AM
Feb 2, 2017, 7:00 AM
News Around The World.
Feb 1, 2017, 7:20 AM
Jan 31, 2017, 7:57 AM
Tips of Today
Jan 30, 2017, 6:53 AM
What is new?
Jan 29, 2017, 6:26 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information