According to an anonymous source, the troubled Fisker Automotive has hired law firm Kirkland & Ellis to give advice on possible bankruptcy filing.
After Chinese company Dongfeng dropped its bid for Fisker, the automaker was left seeking for other possible investors and partners, while furloughing this week the US workers to preserve cash. The source said that the company’s advisor is Anup Sathy, a bankruptcy lawyer at Kirkland who also handled the Chapter 11 filings at Innkeepers USA Trust and General Growth Properties.
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, which will be produced at the Delaware plant. In several weeks Fisker will have to repay part of the US Department of Energy loan which the automaker received in 2009.
It seems that this past month has brought Fisker many challenges with Henrik Fisker, the automaker’s founder, abruptly resigning the company, and with Dongfeng and Zhejiang Geely Holding Group dropping their bids due to the US Government conditions. Fisker’s chief executive, Tony Posawatz, went to China this week to try and convince the companies not to give up on the agreement.