Fisker might commence bankruptcy procedures as early as the middle of May, according to a filing with the US Securities and Exchange Commission, SEC. The embattled company has not been able to attract an investor to secure a lifeline.
Fisker defaulted on an $8.4 million interest payment due in the middle of March. With the 30-day grace period over, the EV maker has now written to the SEC that it might need creditor protection within the next 30 days unless it attracts new investments.
Fisker wrote, “The Company has been seeking additional financing, attempting to restructure its current debt obligations and continues to discuss financing alternatives with potential providers. In addition to reducing expenses, the Company intends to further reduce its workforce and streamline its operations, including reducing its physical footprint.”
The American startup had already warned investors that it could go out of business, as required by the law for companies that lack enough cash at hand to operate for a year to provide notice.
Fisker tried to stop the cash bleed by pausing the production of its only EV, the Ocean SUV. It struggled to retain reservations after YouTuber MHKBD lambasted it as the worst car he had ever reviewed. The company also laid off about a quarter of its workers. The company also slashed prices of its Ocean SUV by nearly 40% in Canada and the US in an attempt to get rid of the thousands that had been built but were unsold.
The Fisker Ocean has been beset by many problems, for which it is the subject of multiple investigations by the NHTSA.
Company founder Henrik Fisker’s first attempt at making an electric car ended similarly when Fisker Automotive declared bankruptcy in 2013.
