The green car manufacturer that has undergone financial losses with losses at the NY/NJ Port area as well as funding issues Fisker Automotive is now mulling seeking bankruptcy protection. It has hired the law firm of Kirkland and Ellis to prepare for such an option and plan for its restructuring.
The move was first reported by the Wall Street Journal and it cited people familiar with the situation but talked on condition of anonymity.
Previously, the company has placed on furlough 200 employees it currently has as well as receiving news that two of its strategic partners backing out from acquisition talks. A Fisker spokesman declined to comment though on the possible bankruptcy filing.
It is currently saddled with a loan payment due with the US Department of Energy from a federal loan granted back in 2009. While Fisker had utilized US$193 million, it was barred from further funding releases because of its inability to comply with contractual requirements, such as the delay in the launch of its flagship, the Fisker Karma plug-in hybrid.
Join the Conversation