In a dramatic turn of events, American electric vehicle startup Fisker has filed for bankruptcy, announcing its intention to sell off company assets to restructure its debt.
The company faced significant cash burn while trying to deliver the Ocean SUV in the United States (U.S.) and Europe.
Fisker intends to file for Chapter 11 bankruptcy protection, citing “various macroeconomic and market obstacles” that hindered its ability to operate efficiently, according to a statement.
The firm stated that selling its assets is the most viable path forward and is currently in advanced discussions with interested parties to finance its debt.
Its operating unit is estimated to have assets valued between 500 million dollars and 1 billion dollars, with liabilities ranging from 100 million dollars to 500 million dollars.
The bankruptcy filing reveals that Fisker has between 200 and 999 creditors.
Earlier this year, the company halted production and future project investments after negotiations for investment from a major vehicle manufacturer fell through, leading to a 15 per cent reduction in its workforce.
Despite forecasting production of over 100,000 vehicles in 2023, it delivered just 4,700 cars.
Its market capitalization has plummeted by over 90 per cent since January, trading at around 0.045 dollars per share on Monday.
Additionally, the company is under investigation by U.S. authorities for certain incidents involving its vehicles.
