Fisker Close to Filling for Bankruptcy image

Yesterday, April 24th, Fisker announced during the congressional hearing it is considering filling for bankruptcy.

The House Oversight and Government Reform Committee recently released new documents according to which the struggling plug-in hybrid automaker was facing deeper quality and financial issues than those previously known. The documents also show that the Energy Department knew about these problems and still offered Fisker a loan $192 million, before it halted in June 2011 the rest of the money until $529 million, the government planned to offer the automaker.

Over the past month Fisker has not managed to find an investor or buyer, has not manufactured a car since July and has fired three quarters of its workforce. Fisker’s co-founder and a top official, Bernhard Koehler, said that the company is struggling to find solutions to all these problems.

“I do not know exactly what the future holds for Fisker Automotive, including whether the company will be able to find new investors or whether the company may be obliged to seek bankruptcy protection to facilitate its continued efforts to preserve value for all stakeholders,” he said during the congressional hearing.

The Energy Department not only offered Fisker $37 million in additional private funding in 2011, but also extended the company’s deadline by another year to help it meet the imposed milestones. Unfortunately the problems kept coming and Fisker has to deal with multiple quality issues and recalls and the bankruptcy of battery supplier A123 Systems.

Source: The Detroit News