Fisker Mulls Bankruptcy After Talks With Automaker Collapse
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Struggling electric vehicle startup Fisker Inc. said in a regulatory filing that talks with a major automaker about an investment were terminated without a deal, which means the company needs to renegotiate terms for recent financing or face the possibility of filing for bankruptcy protection.
Fisker had said March 18 that it had secured a commitment of $150 million in financing from an existing investor, but one of the terms of that deal was an agreement with an unidentified large automaker for an investment. Without such an agreement, Fisker needs to renegotiate terms of its financing or seek other options, including bankruptcy, the company said.
The company’s problems coincide with a general reset among automakers who are either reining in EV investments amid slowing sales growth or straining to find financing in a tougher market.
After termination of discussions with the automaker, Fisker said it intends to work out new terms with the investor. Fisker had already missed an interest payment of $8.4 million early in March on some 2026 convertible notes and said that bankruptcy was a possibility.
The New York Stock Exchange announced it was suspending trading of Fisker stock after shares sank following the news that it would not be getting an investment.
The NYSE said in a statement that Fisker shares were “no longer suitable for listing based on ‘abnormally low’ price levels” and trading would be suspended immediately. Before trading was halted at 9:35 a.m. March 25, Fisker shares fell 28% to 9 cents. The stock has dropped 95% since the start of the year.
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