Fisker Inc. Files for Chapter 11 Bankruptcy
Electric Vehicle Startup Hit Hard by Financial Woes
Los Angeles, California - February 29, 2024
Fisker Inc. (FSR), an electric vehicle startup, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
According to the company's bankruptcy filing, Fisker Group Inc., Fisker's operating unit, estimated assets of between $500 million and $1 billion, and liabilities of the same amount. The company has been struggling financially for some time, and its stock price has plummeted in recent months.
Fisker was one of several EV startups that raised billions of dollars in funding in recent years on the promise of rapid growth. The company made its market debut in October 2020 by merging with a special purpose acquisition company (SPAC). However, Fisker has faced a number of challenges, including production delays and supply chain disruptions.
In a statement, Fisker said that it is "exploring all options to maximize value for our stakeholders, including a potential sale of the company or its assets." The company has hired investment bank Houlihan Lokey to advise on its restructuring options.
Fisker's bankruptcy filing is the latest setback for the electric vehicle industry. A number of EV startups have filed for bankruptcy in recent years, including Faraday Future and Lordstown Motors. The industry is facing a number of challenges, including rising costs, supply chain disruptions, and competition from established automakers.
It remains to be seen whether Fisker will be able to successfully restructure its business and emerge from bankruptcy. The company has a number of challenges ahead, but it also has a number of potential assets, including its technology and its brand.
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