According to media reports, sources familiar with the matter revealed on March 13 that the electric car startup Fisker has hired restructuring advisors to assist with a potential bankruptcy filing.
Fisker is reported to have engaged financial advisor FTI Consulting and law firm Davis Polk to work on the possible bankruptcy filing. The company declined to comment on the matter.
Earlier this month, Fisker stated that it faced the risk of collapse, as well as layoffs and a suspension of investments in future projects, until it secured a partnership with a manufacturer.
Foreign media earlier this month cited two individuals familiar with the negotiations as stating that Nissan is in advanced talks to invest in Fisker, with the deal potentially involving the production of electric pickup trucks by the Japanese automaker.
Fisker's main product is the Ocean electric SUV, and the company operates with a unique business model. The Ocean, its only model in production, is manufactured through outsourced production by Magna in a factory located in Austria, which has previously produced vehicles for Mercedes-Benz, BMW, Jaguar, and others.
Last year, Magna produced 10,193 SUVs for Fisker, but delivery volumes were less than half. Fisker expects to deliver approximately 20,000 vehicles this year.
Last year, Fisker's stock price plummeted by nearly 95%, and the company reported receiving a delisting notice from the New York Stock Exchange last month as its stock price remained below $1 for over 30 consecutive trading days.
