Battle over assets Electric vehicle startup nears liquidation

NEW YORK:

Electric vehicle startup Fisker is headed towards liquidation, attorneys said in US bankruptcy court on Friday, as two creditor factions previewed a battle over which group will be paid first.

Fisker filed for bankruptcy protection in Delaware on Monday after burning through cash in an attempt to ramp up production of its Ocean SUVs.

The company initially said it would seek additional financing and continue “reduced operations,” but Fisker’s attorney Brian Resnick said at the hearing in Wilmington the company does “not currently anticipate being able to obtain financing.”

Resnick told US Bankruptcy Judge Thomas Horan that the company planned to liquidate its assets, and it has reached a tentative deal with a single buyer for all of its 4,300 vehicles. The California-based company was never profitable, with about $273 million in revenue in 2023 and a net loss of $940 million.