Fisker Inc. has temporarily halted all production for six weeks. At the same time, the brand says that it may be necessary to seek bankruptcy protection.
Fisker Inc. is in serious trouble.
Although it emerged this week that the brand has apparently gotten an existing investor to throw another DKK 1 billion into the company, the car brand's existence is still threatened.
Fisker insists that it is in negotiations with 'a major car brand' about platform sharing in exchange for a financial rescue of 400 million dollars, corresponding to 2.7 billion Danish kroner.
According to sources cited by the news agency Reuters, the 'major car brand' is Japanese Nissan. Nevertheless, Fisker also warns that you may have to seek bankruptcy protection.
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On Monday of this week, Fisker said that they had not paid interest and installments on a loan that was otherwise due. The car brand states that it is about 8.4 million dollars, corresponding to just under 58 million Danish kroner.
As a reason, Fisker states that they will use a period of 30 days to discuss the situation they are now in with the brand's other investors and possible partners.
In the same breath, however, Fisker warned that it is necessary to seek 'further capital injections'. Failing that, the car brand may be forced to seek bankruptcy protection.
The so-called "chapter 11 procedure" gives a company like Fisker time to reconstruct itself and pay its creditors in order to continue operations.
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Just two weeks ago, when Fisker handed over the accounts, it appeared that the brand still believed it could deliver 20,000 to 22,000 cars this year. However, that goal seems to have long prospects.
Fisker now states that it has only delivered 1,300 cars this year. And that no Fisker Ocean models were built at all at Magna Steyr's factory in Austria, where the car brand is currently renting, in January.
On top of the many bad news, Fisker's value on the New York Stock Exchange has rattled down. The share is worth so little that the car brand has now been told that it is at risk of going out of business. Read more about it here .
