Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
In a recent SEC filing, the electric vehicle (EV) startup Fisker announced an agreement reached on Wednesday with an investor to extend the deadline to May 17. Both parties have agreed that the company will “continue to sell vehicles at auction and through dealers and direct-to-consumer sales.”
Previously, according to an 8k filing, Fisker missed an installment payment of about $8.4 million due on March 29. In simpler terms, the company failed to make a scheduled payment, putting it in violation of the agreement it made when it issued those specific notes.
This breach triggered the investor’s right to demand immediate redemption of their investment.
However, instead of immediately enforcing this right, the investor has agreed to temporarily refrain from doing so, as well as from exercising any other default-related rights and remedies against the EV startup.
This forbearance period was initially until May 1, with the investor abstaining from taking action against Fisker starting on April 21.Extending this agreement until May 17 provides more time for Fisker to address its default issues or negotiate a longer-term solution with the investor.
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Additionally, Fisker added that agreed to various provisions, including providing the Investor with a new three-week budget and cash flow forecast.
Insolvency of Fisker Austria
Earlier this week, Fisker’s entity in Austria (Fisker GmbH) announced that it had voluntarily filed to open a restructuring proceeding via self-administration under the Austrian Insolvency Code.
“The proceeding will enable Fisker Austria to continue its operations under court protection, including paying employees and selling vehicles, while it pursues a strategic transaction or other sale of assets,” the company stated.
This proceeding will allow Fisker Austria to continue its operations under court protection, including paying employees and selling vehicles, while it pursues a strategic transaction or other sale of assets.
The company and its other subsidiaries are not included in the Austrian restructuring proceeding and continue to operate in the ordinary course, as reported by EV.
The EV startup is in the process of closing its Manhattan Beach headquarters relocating the employees to its La Palma office, three sources familiar with the matter disclosed to Business Insider.
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The report follows the recent closure of Fisker showroom in New York as it transitions from direct sales to a dealer partnership model.
Fisker sold 30 units of its debut model Ocean in Germany during April, marking an increase from the 24 units sold in March. With 80 vehicles sold in the first quarter of the year, Fisker’s year-to-date sales now total 110 units as of the end of April.
In late March, Fisker initiated significant discounts on its 2023 inventory, with the Extreme variant now starting at $37,499 (reduced from $61,499), the Ultra variant at $34,999 (down from $52,999), and the Sport variant at $24,999 (previously $38,999).
In January, the company announced a business model shift from direct sales to customers to a dealer partnership model. One and a half months later, the EV startup said over 250 dealers in “North America and the rest of the world ” showed interest in selling its first production model Fisker Ocean.
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Last week, Fisker announced the addition of six dealer partners in the US bringing the number up to 12 as it continues to switch to dealer partnership model. The company has now a total of 24 locations when adding the 12 dealers in Europe — nearly the triple from the 9 dealer locations the company was partnering with four weeks ago.
In the recently filed annual report, Fisker said that was “selecting its dealers based upon multiple criteria, including a dealer’s ability to deliver a high level of customer satisfaction”.
Three weeks ago, in mid-April, Fisker had announced new dealer partners in the U.S. and Europe having. As of today, Fisker has dealer partners in six European countries including Denmark, Austria, France, Germany, Norway, and Switzerland.
Fisker has recently withdrawn all financial and operational guidance for 2024 and appointed both Deutsche Bank and PJT Partners as financial advisors to explore strategic alternatives.
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
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