Fisker Group Inc. Files for Chapter 11

Rhea-AI Summary

Fisker Group, subsidiary of Fisker, announced its Chapter 11 filing on June 17, 2024, in Delaware. The company is in advanced talks for debtor-in-possession financing and asset sales. Fisker attributed its decision to market and macroeconomic challenges. Although its manufacturing pause continues, Fisker aims to maintain reduced operations and employee benefits, while its parent company and non-U.S. subsidiaries are unaffected. Legal and restructuring advisors include Davis Polk & Wardwell LLP and Huron Consulting Group.

Positive

• Fisker Group is in advanced discussions for debtor-in-possession financing, which can help sustain operations during restructuring.
• The company has successfully launched the Ocean SUV, delivering thousands of units in North America and Europe.
• Fisker aims to maintain employee wages, benefits, and essential operations during the Chapter 11 process.
• Fisker's parent company, Fisker Inc., and its subsidiaries outside the U.S. remain unaffected by the Chapter 11 filing.

Negative

• Fisker Group filed for Chapter 11 bankruptcy, indicating severe financial distress.
• The previously announced manufacturing pause will continue, potentially affecting future revenue and market presence.
• Market and macroeconomic headwinds have significantly impacted Fisker's operational efficiency.
• The need for debtor-in-possession financing suggests liquidity issues.

In advanced discussions with financial stakeholders regarding debtor-in-possession financing

LOS ANGELES--(BUSINESS WIRE)-- Fisker Group Inc. (“Fisker”), the operating subsidiary of Fisker Inc., today announced that it filed for Chapter 11 protection in the District of Delaware on June 17, 2024. It is in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets.

“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” said a Fisker spokesperson. “We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American and Europe. But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

Fisker’s previously announced manufacturing pause will remain in place. Fisker intends to file certain customary motions with the Bankruptcy Court to ensure its reduced operations are able to continue, including paying employee wages and benefits, preserving certain customer programs, and compensating needed vendors on a go-forward basis. Fisker Inc. and other U.S. subsidiaries, as well as subsidiaries outside the U.S., are not included in the Chapter 11 filing at this time.

Fisker is represented by Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP as legal advisors and Huron Consulting Group as restructuring advisor.

About Fisker Inc.

California-based Fisker Inc. is revolutionizing the automotive industry by designing and developing individual mobility in alignment with nature. Passionately driven by a vision of a clean future for all, the company is on a mission to create the world’s most sustainable and emotional electric vehicles. To learn more, visit Fiskerinc.com and enjoy exclusive content across Fisker's social media channels: Facebook, Instagram, X, YouTube, and LinkedIn.

Download the revolutionary new Fisker mobile app from the App Store or Google Play.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240617048760/en/

Media:

Matthew DeBord

VP, Communications

mdebord@fiskerinc.com

Rachel Chesley / Jennifer Mercer

FiskerCommunications@fticonsulting.com

Source: Fisker Inc.

FAQ

What is the latest news about Fisker Group FSRN?

Fisker Group filed for Chapter 11 protection on June 17, 2024, and is discussing debtor-in-possession financing and asset sales.

Why did Fisker Group file for Chapter 11?

Fisker Group cited market and macroeconomic challenges as reasons for filing Chapter 11 and decided that asset sales under this process were the best path forward.

Is Fisker Inc. affected by the Chapter 11 filing?

No, Fisker Inc. and its other U.S. and non-U.S. subsidiaries are not included in the Chapter 11 filing.

What is debtor-in-possession financing in the context of Fisker Group FSRN?

Debtor-in-possession financing is funding provided to Fisker Group while it undergoes Chapter 11 restructuring to help maintain its operations.

What impact does the Chapter 11 filing have on Fisker Group's manufacturing?

The previously announced manufacturing pause will continue, which could affect the company's future revenue and market standing.