Congress Announced Hearing Date for Fisker Troubles image

On April 24th, the House Oversight and Government Reform Committee will take a decision regarding the $529 million loan to be offered to Fisker.

In 2009 the Energy Department offered Fisker a $529 million loan, from which $193 million was spent to develop the Karma model, which was engineered in the US but manufactured in Finland. The rest of the loan was frozen in 2011 due to the automaker’s problems. If Fisker decides to file for bankruptcy, the Energy Department would be the company’s top creditor.

“The Department of Energy has never owned up to its mistakes and acknowledged it didn’t do a good job of choosing Fisker and A123 as worthy of taxpayer investment,” U.S. Sen. Chuck Grassley, R-Iowa, said in an e-mailed statement.

Fisker has not manufactured a single $100,000-plus Karma plug-in hybrid in the past six months as it looks for financial backer to help the company finish the development and begin production for its second plug-in hybrid, the Atlantic. Last month the company hired law firm Kirkland & Ellis to give advice on possible bankruptcy filing.

At the end of last week Fisker laid off 160 of the 210 employees working at the Anaheim, California plant, without giving them severance pay, only compensation for unused vacation days.