The fall of EV startup Fisker

Fisker owners get help with recall repairs

Fisker’s plan to liquidate its assets has been accepted by the bankruptcy court in Delaware. The court’s acceptance of the plan brings the four-month process of Fisker’s bankruptcy mostly to a close. And it gives a green light to a newly-appointed trustee to oversee the sale of around $1 billion in assets, including the manufacturing equipment that was used to build Fisker’s electric SUVs. The plan also lays out all the details about how much money Fisker’s myriad creditors will receive from the sale of those assets. More here.

Fisker bankruptcy hits major speed bump as fleet sale is now in question

Fisker’s Chapter 11 bankruptcy has hit a major snag, as the company buying the startup’s remaining fleet of electric SUVs says it might not complete the purchase because of a surprising technical issue.

Fisker’s plan to make owners pay for recall repairs is illegal, DOJ says

The U.S. Department of Justice says bankrupt EV startup Fisker’s plan to make owners pay for labor costs related to multiple recalls is illegal, according to a new filing.

The DOJ, writing on behalf of the National Highway Traffic Safety Administration (NHTSA), said in a filing submitted to Fisker’s bankruptcy docket Monday that the “scheme” violates the National Traffic and Motor Vehicle Safety Act in multiple ways. The agency told the court that it therefore objects to Fisker’s proposed settlement plan, which lays out steps to liquidate the remainder of the company. That plan could be confirmed by a judge as early as Wednesday during a previously scheduled hearing.

Fisker’s HQ abandoned in ‘complete disarray’

The headquarters Fisker used in its waning days was recently abandoned and left in “complete disarray,” with drums of apparent hazardous waste, automotive equipment, and even vehicles and full-size clay models left behind, according to the landlord.

Fisker faces SEC investigation

Bankrupt EV startup Fisker is under investigation by the U.S. Securities and Exchange Commission, according to a new filing from the financial regulator. The agency does not say what the investigation specifically involves, only that it could result in “future actions alleging violations of the federal securities laws.

Fisker reverses course on making Ocean owners pay for recall repairs

Bankrupt EV startup Fisker is reversing course just a few days after telling owners that they would have to pay labor costs for recall repairs. The company edited the FAQ page on its website to say “Fisker will provide the necessary parts (including the labor) at no cost to you.”

The question haunting Fisker’s bankruptcy

July 29, 2024 — The question folks are asking: does the automaker’s loan secured lender Heights Capital Management deserve to be at the front of the line to reap the proceeds of a liquidation? The entities reached an agreement to hammer out a settlement in the coming weeks on how to liquidate its assets. If successful, the case could remain in Chapter 11. If not, it would convert to Chapter 7, which would effectively dissolve Fisker forever.

Fisker cleared to sell North American EVs for $46.25M

July 16, 2024 — A bankruptcy judge gave Fisker the green light to sell more than 3,000 of its Ocean SUVs to a vehicle leasing company, which will net the defunct EV startup a maximum of $46.25 million. The approval of the sale clears the way for the rest of Fisker’s bankruptcy process to play out as it continues to liquidate what’s left of its failed business.

Fisker has one major objector to its Ocean SUV firesale

July 15, 2024 — The office of the U.S. Trustee, an arm of the Department of Justice that oversees the administration of bankruptcy, is objecting to a deal that would keep Fisker’s bankruptcy proceeding alive and pave the way for paying back creditors some of what they’re owed.

Henrik Fisker, Geeta Gupta-Fisker drop salaries to $1

July 9, 2024 — Henrik Fisker and his wife, Fisker co-founder Geeta Gupta-Fisker, are lowering their salaries to $1 in order to keep their failed EV startup’s bankruptcy proceedings funded. In addition to the salary reductions, Fisker’s restructuring officer, John DiDonato, said in Tuesday’s filing that Fisker will defer “certain severance payments, certain employee healthcare benefits, and vehicle sale incentive bonuses” that have not yet been paid. 

Fisker asks bankruptcy court to sell EVs for about $14K each

July 3, 2024 — If a judge in the Delaware Bankruptcy Court approves Fisker’s request to sell its remaining inventory to a New York-based vehicle leasing company, the automaker would be able to offload 3,231 finished EVs for $46.25 million, or around $14,000 per vehicle.

The fight over Fisker’s assets is already heating up

June 21, 2024 — The fight over Fisker’s assets is already charged just days into its bankruptcy filing, with one lawyer claiming the startup has been liquidating assets “outside the court’s supervision.” At issue is the relationship between Fisker and its largest secured lender, which loaned Fisker more than $500 million in 2023 at a time when the company’s financial distress was looming behind the scenes.