Connect with us

Hi, what are you looking for?


Tesla's competitor is marching toward liquidation, and creditors are hanging on

Tesla's competitor is marching toward liquidation, and creditors are hanging on

California-based Fisker filed for bankruptcy protection in Delaware on Monday after ramping up production of its Ocean SUVs depleted its cash reserves. Although it originally requested additional funding and planned to continue “reduced operations,” The company does not currently expect to be able to obtain financing Fisker's attorney, Brian Resnick, said at the court hearing.

According to Reuters, the company plans to liquidate. A preliminary agreement has already been concluded with a buyer for the fleet of 4,300 vehicles.

Founded by automobile designer Henrik Fisker, the company was never profitable. In 2023, it achieved revenues of about $273 million, while its net loss amounted to $940 million.

Fisker owes more than $850 million to two groups of bondholders. Lawyers for the larger group accused a minority group led by Heights Capital Management of taking control of Fisker's debt in a “suspicious” deal in November. “Almost the entire business has been turned over to Heights,” Alex Lees, a lawyer for the other bondholders, told Judge Horan. According to Lees, the company should have already declared bankruptcy in November. His group also wants to challenge the November agreement that prioritized the Highlands for repayment. The expected fleet sale would cover only a small portion of Heights' $185 million in debt, leaving little hope for other creditors.

Source: Reuters

Cover image source: Shutterstock

See also  Indicator - Economy - Starting Monday, traveling with tickets on some Volanobos flights will be a serious challenge
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Top News

In a harrowing incident that has shaken the community of Lewiston, Maine, a series of shootings on Wednesday evening resulted in a tragic loss...

Top News

President Joe Biden’s abrupt departure from a speech on the U.S. economy at the White House on Monday sent a ripple of speculation and...


Chinese scientists have discovered a little-known type of ore containing a rare earth metal highly sought after for its superconducting properties. The ore, called...

Top News

Given the differences in styles with next-generation consoles, the so-called “console war” between Sony and Microsoft is arguably moot. Most console players, however, will...

Copyright © 2024 Campus Lately.