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Fisker woes deepen

Things aren't going well for electric automaker Fisker. The company was expected to file for bankruptcy protection this month and was forced to lay off 75% of its workforce. The unexpected slashing of its workforce led to a suit by former employees. Today we learned that Fisker has failed to make its first $10 million payment to the Energy Department to repay the massive federal loan it was given.

A spokesperson from the Energy Department named Aoife McCarthy said that the federal government earlier this month recouped $21 million of the $192 million it loaned Fisker.

"Given the obvious difficulties the company is facing, we are taking strong and appropriate action on behalf of taxpayers," McCarthy said.

"Using the safeguards we write into our loan agreements, the department stopped disbursing on the loan in June 2011 after the company, taking a significant chunk of taxpayer money with it short of the aggressive milestones that we had established as a condition of the loan," she said. "As a result, while our original loan commitment was for $529 million, only $192 million was actually disbursed."

Fisker’s current and former CEOs are set to testify at House hearing this week about the struggles with the automotive manufacturer. Along with the automotive executives from Fisker, Energy Department supervisory senior investment officer for loans program office, Nicholas Whitcombe, will also be testifying.

The Obama administration approved Fisker for the $529 million federal loan in 2010. The automaker produced only 2,500 of its plug-in hybrid sedans at an estimated cost of $660,000 each when federal and private funds are considered.

Source: Wall Street Journal



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RE: Crony Capitalism
By Dr of crap on 4/23/2013 12:55:04 PM , Rating: 3
Just think of the good things all of the money COULD have done.
Better to invest in the power infracture, high speed internet to everyone, and others rather than loose money on START UPS.

If the company NEEDS that much to get going, maybe the time isn't right for it to start out and ask our govt for a hand out!

WE are in no postion to give out such large sums and not suffer from it. These are not times to loose that much money!


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