Fisker says the company will have to file for bankruptcy within 30 days if it doesn’t receive debt relief in the United States
- Fisker has missed a required $8.4 million interest payment and says it is running out of cash.
- The company added that it may have to file for bankruptcy in the next 30 days if it does not receive debt relief.
- The EV startup has hired a chief restructuring officer as it faces a bleak future.
Fisker’s outlook for the year is bleak, and there’s a chance the company may not survive beyond 2025. According to documents filed with the SEC, the automaker is disclosing its dwindling cash reserves and the appointment of a chief restructuring officer.
In its annual 10-K, Fisker reported missing a required interest payment of $8.4 million. The automaker also wrote that it does not believe it has enough cash to meet its current obligations for the next 12 months. There are therefore “significant doubts about the company’s ability to continue as a going concern.”
Read: Fisker traders remain hopeful despite Brand’s delisting from the NYSE
“If [Fisker] “If the Company does not obtain sufficient relief from its debtors and sufficient additional liquidity from potential liquidity providers to meet its current obligations, it expects to file for protection under applicable bankruptcy laws in multiple jurisdictions within 30 days of the issuance of these financial reports will,” the company wrote in its filing.
To address this challenging situation, Fisker has retained the expertise of a “chief restructuring officer,” as reported in a separate 8-K filing with the SEC. Michael Healy, senior managing director at FTI Consulting, will take on the role.
“Mr. Healy specializes in restructuring and reorganizations,” Fisker wrote. “Mr. Healy has extensive experience that includes advising companies, creditors, shareholders and other interested parties in both Chapter 11 and non-bankruptcy restructuring transactions.”
The moves follow Fisker’s difficult start to the year. Although the automaker began delivering its first electric vehicle, the Ocean, to customers last year, the SUV’s launch was marred by a series of poor reviews and defect complaints.
At the same time, Fisker’s stock price began to fall, leading to the company’s delisting from the New York Stock Exchange earlier this month. Despite efforts to attract investors and secure a financial lifeline, the company faced increasing financial problems. With bankruptcy proceedings looming, the automaker’s options appear to be increasingly limited.
