Written by Cláudio Afonso | LinkedIn | X
Electric vehicle manufacturer Fisker Inc. has been granted approval from the court to proceed with a crucial asset sale as part of its Chapter 11 bankruptcy proceedings.
Earlier this month, the company requested court approval to sell its vehicle inventory of 3,321 vehicles to generate essential cash flow for ongoing operations and to facilitate a possible orderly liquidation.
Fisker will sell approximately its Ocean SUVs for up to $46.25 million to American Lease — indicating an average price per vehicle of approximately $13,900. The New York-based ride-share leasing company will cover all incidental costs, including shipping and necessary safety repairs.
The sale includes Fisker vehicles in Austria and Belgium, pending regulatory approval and a trust arrangement.
Chief Restructuring Officer John C. DiDonato emphasized the urgency of the sale, highlighting that Fisker’s liquidity is nearly exhausted. Without the sale proceeds, the company cannot cover critical expenses such as employee payroll.
The sale has support from key stakeholders, including Fisker’s sole secured lender and the official committee of unsecured creditors.
As reported last week, the co-founder of the electric vehicle (EV) maker, Henrik Fisker, has cut its salary to $1 as the startup navigates bankruptcy proceedings. Additionally, his wife and Fisker’s CFO, Geeta Gupta-Fisker, has taken the same measure.
Earlier in the week, the company’s subsidiary in the UK has filed for bankruptcy, according to an email sent to owners of the Ocean SUV who were seeking a service appointment.
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In the UK, a technician revealed that the team has been informed, “they won’t be paid until the insolvency hearing on August 21st, at which point they will be able to claim £700 ($898) per week from the government”.
The employee added that it “won’t be paid any outstanding expenses.”
Last month, a group of Fisker owners announced the formation of a non-profit association aiming to ensure continued access to parts and services for owners, as the startup filed for bankruptcy protection in Delaware.
Earlier today, the company issued a recall for 7,545 of its Ocean electric SUVs following the discovery of a potentially serious issue with the vehicle’s water pump.
The National Highway Traffic Safety Administration (NHTSA) announced that the recall affects all 2023-2024 Ocean models.
Last month, the company has halted the sales globally due to a defect with the exterior door handles that can cause them to stick and not open.
Written by Cláudio Afonso | LinkedIn | X
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