Fisker Automotive has filed for Chapter 11 bankruptcy protection on Friday as part of a restructuring plan. Hybrid Tech Holdings LLC is buying Fisker’s assets and will provide $8 million in debtor-in-possession financing for funding the sale and restructuring.
Fisker Automotive Inc. Posts
The Department of Energy gave bankrupt electric car company Fisker $192 million to build their cars and a factory. The Energy Department will look at bids today to sell off the remainder of the loan to Fisker. Bidders have offered at least $30 million with 10% down, according to Reuters. Fisker was worth $2 billion at one point.
Fisker Automotive is a struggling auto manufacturer based in Anaheim, California that created one of the world’s first production plug-in hybrid electric vehicles. Fisker spent around $1.4 billion to build the company up and this includes around $193 million in federal loans.
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Tom LaSorda (former CEO of Chrysler Group LLC), Fisker Automotive, and car racing mogul Roger Penske (pictured above) have launched a new venture capital fund to invest in technology startups called IncWell LP. IncWell will invest between $50,000 and $250,000 per company. IncWell will focus primarily on clean energy, medical, healthcare, transportation, and information applications.
Just when you thought things couldn’t get any worse for Fisker Automotive. The company is now facing another lawsuit that was filed at the Orange County Superior Court. Ignited, the company that designed Fisker’s website and mobile app, has filed a lawsuit against the company alleging $535,000 in unpaid bills. Ignited said that they provided Fisker web design, creative and media buying services, and advertising. Fisker is also embroiled in a class action lawsuit for laying off 75% off their workforce and another lawsuit for unpaid rent. All three of these lawsuits were filed this month alone.
Last month, Henrik Fisker stepped down from the Fisker Automotive Inc. Disagreements with management was the reason cited for his departure. Now Fisker Automotive will be cutting a large number of their workforce. The number of people that will be laid off is approximately 160 out of the 200 total people that they employ. This means that Fisker Automotive will have only 25% of their current workforce to work with.
XL Group Plc denied insurance coverage related to damages incurred by Fisker Automotive caused by Hurricane Sandy. A total of 338 Karma plug-in hybrid vehicles were damaged as a result of the hurricane. The vehicles were valued at around $33 million. The Fisker Karma vehicles were parked at Port Newark in New Jersey. This shipping facility was destroyed by Hurricane Sandy. Fisker filed a complaint this past Friday in the New York State Supreme Court in Manhattan.