Fisker Fails to Repay the Energy Department Part of the $192M Loan image

Fisker Automotive failed to repay the Energy Department part of the loan it was supposed to give this month.

Fisker, which is still looking for an investor or buyer and considers a possible bankruptcy, failed to repay the Energy Department $10 million, part of the loan the company has received to start production for its Karma sedan. Energy Department spokeswoman Aoife McCarthy confirmed Fisker has not made the payment and that the government recouped at the beginning of this month $21 million from the $192 million loan.

“Given the obvious difficulties the company is facing, we are taking strong and appropriate action on behalf of taxpayers,” McCarthy said. “The department stopped disbursing on the loan in June 2011 after the company fell short of the aggressive milestones that we had established as a condition of the loan. As a result, while our original loan commitment was for $529 million, only $192 million was actually disbursed.”

Tomorrow, April 23rd, the House Oversight and Government Reform’s panel on Economic Growth, Job Creation, and Regulatory Affairs will hold a hearing on Fisker and the Energy Department’s decision to offer the company the $529 million loan. In March the Energy Department announced it will no longer offer loans from the Congress’ $25 billion auto loan program.

Source: The Detroit News