EV startup Fisker files for bankruptcy (updated)
18/06/2024 05:30
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June 18 -
U.S. electric vehicle maker Fisker filed for bankruptcy
protection late on Monday as deal talks with a big automaker
collapsed, exposing the startup to the fallout of a rapid cash
burn to deliver its 'Ocean' SUVs in the United States and
Europe.
The company's unit, Fisker Group Inc, filed for Chapter 11
bankruptcy, listing estimated assets in the range of $500
million to $1 billion and liabilities in the range of $100
million to $500 million.
The termination of talks with a large automaker led Fisker
to search for strategic options, including in- or out-of-court
restructurings and capital markets transactions, the startup had
said earlier this year.
While Fisker has not named the company, Reuters had
reported that Japanese automaker Nissan 7201.T was in advanced
talks to invest in the startup.
The company, founded by automotive designer Henrik Fisker,
flagged doubts about its ability to remain in business back in
February and had paused investments into future projects until
it secured a partnership with an automaker.
Tight access to capital in a high interest rate economy,
costs associated with marketing and distributing its vehicles
and slower-than-expected EV demand dragged the company's cash
reserves lower.
Weak demand growth for EVs has particularly hit startups
like Fisker at a time when rivals cut jobs and delay expansion
plans to conserve cash.
(Reporting by Akash Sriram, Arsheeya Bajwa and Abinaya
Vijayaraghavan in Bengaluru; Editing by Arun Koyyur and Devika
Syamnath and Savio D'Souza)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))