Pressure from the U.S. Department of Energy to repay nearly $200 million in government loans could force Fisker Automotive to file for bankruptcy protection as early as this week.
As part of its original $529 million government loan, the maker of the $100,000-plus Karma hybrid sports car agreed to build a second model at plant in Delaware and continue hiring engineers to further develop and upgrade the tools, equipment and manufacturing processes that were used to build the first model. Popular opinion was that Fisker would help revive the struggling auto industry through the creation of thousands of new jobs and the development of innovative technology.
Now, however, due in part to a series of costly vehicle recalls and the inability to secure adequate financial backing, Fisker has not built a vehicle in almost a year.
Reuters reported earlier this week that the hybrid luxury car maker’s attorneys have already prepared documents for a Chapter 11 bankruptcy filing and are ready to file in the next few days.
The company also laid off approximately 160 employees—75 percent—of its workforce last Friday, retaining only 53 senior managers and executives to continue pursuing potential buyers for the company’s assets. Though several companies have expressed interest, none are reportedly willing to assume the terms of the DoE loans.
