Electric Car Startup Fisker on the Brink of Liquidation after Dispute with Creditors over Asset Distribution

Fisker, an American electric car start-up, is on the brink of liquidation after filing for bankruptcy protection. The reason behind this is a disagreement between two groups of creditors over the order in which remaining assets should be distributed. Despite initial plans to secure additional financing and continue operations on a reduced scale, the company has determined that obtaining the necessary funds is unlikely. As a result, Fisker is preparing to sell off its assets, with a potential buyer lined up for all 4,300 vehicles.

With debts exceeding $850 million, Fisker’s stock is essentially worthless but is still being traded. After failed negotiations with a major car manufacturer, the company founded by Danish designer Henrik Fisker filed for Chapter 11 bankruptcy protection in the US. Assets valued between $500 million to $1 billion are being offset by liabilities ranging from $100 million to $500 million.

Fisker’s Austrian subsidiary, Fisker Austria, is also facing insolvency. The company is seeking a restructuring plan that hinges on securing an investor. The viability of this plan will be determined by ongoing discussions. With liabilities amounting to 1.34 billion euros, Fisker Austria’s goal is to reach a restructuring agreement that entails a 30 percent repayment over two years. The insolvency court has closed several divisions of the Austrian subsidiary, leading to significant cost reductions and a decrease in the number of employed personnel.

A recent report and hearing on the insolvency proceedings of the Austrian subsidiary provided insight into the company’s financial situation. Of the 161 registered claims, more than 1.16 billion euros have been filed, with over 10.92 million euros recognized and 1.15 billion euros being disputed. The future of Fisker Austria heavily depends on the success of its restructuring efforts and the ability to attract an investor.