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Fisker Inc. is halting manufacturing for the subsequent six weeks because the electric-vehicle maker appears to rein in stock and presumably keep away from submitting for chapter.
The corporate missed required curiosity funds final week on about $8.4 million on its unsecured convertible notes due in 2026, in line with a regulatory submitting on Monday. Fisker warned that it might not be capable of meet its debt compensation obligations and “might have to hunt safety beneath relevant chapter legal guidelines.”
Fisker's shares fell as a lot as 14% quickly after the beginning of standard buying and selling. By the tip of final week the inventory had fallen 90% this 12 months.
Fisker additionally stated Monday it plans to boost as much as $150 million via a financing cope with holders of its 2025-dated convertible notes. The Los Angeles-based EV maker didn’t determine the present investor and stated the funding could be performed in 4 tranches and topic to sure situations.
The revelations spotlight the dire state of affairs at Fisker, which warned late final month that there have been substantial doubts about its potential to stay in enterprise. The corporate has stated it is going to lower 15% of its workforce after battling manufacturing issues, software program glitches and short-seller criticism.
Fisker stated it’s in talks with an unnamed main automaker a few potential funding and joint growth partnership. Bloomberg, citing folks acquainted with the matter, had reported earlier this month that the corporate was in talks with Japan's Nissan Motor Co.
In its assertion, Fisker stated it has about 4,700 automobiles in stock value greater than $200 million. It’s halting manufacturing in Graz, Austria, from this week to unload provides of EVs already constructed.