Fisker, the electric car startup, is on the verge of liquidation

According to Fisker’s lawyer, the US electric car start-up is facing liquidation after filing for bankruptcy protection. The reason for this is a dispute between two groups of creditors over the order in which remaining assets should be paid out. Fisker had initially planned to seek additional financing and continue reduced operations but is no longer able to secure funding. The company is now planning to sell its assets, with a preliminary agreement in place with a single buyer for all 4,300 vehicles.

Fisker owes over $850 million to two groups of creditors, making the stock essentially a total loss. After failed negotiations with a major car manufacturer, the company of Danish car designer Henrik Fisker filed for Chapter 11 bankruptcy in the USA. The company’s Austrian subsidiary is also insolvent, with restructuring proceedings underway. Assets of $500 million to $1 billion are offset by liabilities of between $100 million and $500 million.

Fisker Austria is striving for a restructuring plan through the entry of an investor, with discussions currently ongoing. The proposed plan involves a quota of 30 percent to be paid within two years of the adoption of the restructuring plan. However, the feasibility of this plan will depend largely on finding an investor. Several divisions of the Austrian subsidiary have been closed since the insolvency court’s decision, leading to significant cost savings.

The first report and examination hearing in the insolvency proceedings for the Austrian subsidiary recently took place, with claims totaling over EUR 1.16 billion registered. Of these claims, EUR 10.92 million have been recognized, while claims of over EUR 1.15 billion are being disputed. The company continues to work towards restructuring and finding a way forward amidst its financial difficulties.