US Energy Department Recovered $21M From Fisker image

The US Energy Department announced that on April 11th it got back $21 million from Fisker, part of the almost $200 million loan.

“The department recouped the company’s approximately $21 million reserve account — funds that came from the company’s sales and investors, not our loan- and will apply those funds to the loan,” DOE spokeswoman Aoife McCarthy said on Monday.

Fisker was offered $192 million to begin production of the $100,000-plus Karma plug-in hybrid, and the company was to make the first payment yesterday, April 22nd. In June 2011 the Department suspended the rest of the loan of about $337 million as the company failed to reached the imposed loan conditions.

“Using the safeguards we write into our loan agreements, 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,” McCarthy added.

Fisker has made several steps to try to stay afloat and preserve cash, including searching for a buyer in China, overhauling its management and even laying off three-quarters of its employees. In March, Henrik Fisker, who helped found the company, left the automaker and will testify tomorrow, at the “Green Energy Oversight: Examining the Department of Energy’s Bad Bet on Fisker Automotive” hearing.

Source: Reuters