The sun may be setting on Fisker Automotive
The once promising green-car company may be closing its doors for good
Fisker Automotive will most likely file for bankruptcy protection this week as pressure from the U.S. Department of Energy to pay back nearly $200 million in government loans heats up.
Fisker laid off 75 percent of its U.S. workforce last week and Rueters reports that a $10 million loan payment to the DoE on April 22.
Fisker has talked to a few manufacturers for a sale to bail them out of this mess, but none of the prospective buyers has been willing to assume the terms of the DOE loans. Fisker hasn't built any vehicles since last summer, and there have been no reported new sales of the $100,000 hybrid vehicles since then. "The DoE appears to be pushing a Chapter 11 filing soon by Fisker, several sources close to the company told Reuters on Monday. Fisker's attorneys have drawn up bankruptcy documents and are ready to file in the next few days, Reuters reported.
Fisker's board of directors will discuss its options at a meeting today, one of the sources said. Directors, who have not given up on a possible sale, are expected to make a decision on the timing of a possible Chapter 11 bankruptcy filing at that time, one source said."
The green car maker has retained law firm Kirkland & Ellis to advise on a possible bankruptcy filing.
Source [Automotive news