Fisker, an electric vehicle startup, has received approval from a bankruptcy judge to sell over 3,000 Ocean SUVs to a vehicle leasing company. This deal is set to bring in a maximum of $46.25 million for Fisker, approximately $14,000 per vehicle. The green light for this sale marks a significant step in the bankruptcy process as Fisker works to liquidate its remaining assets.
Following a hearing late Tuesday afternoon, the judge’s decision was made despite some objections raised by the Department of Justice’s office of the U.S. Trustee. The Trustee argued that Fisker had not adequately shopped around the inventory for the best deal and questioned the valuation process for the vehicles. However, Fisker’s chief restructuring officer, John DiDonato, defended the company’s efforts in contacting numerous potential buyers before the bankruptcy filing.
While Fisker faced challenges in finding interested buyers, American Lease emerged as a solid lead and eventually agreed to purchase the inventory. With the approval of the sale, Fisker will sell around 1,000 Ocean SUVs to American Lease in the coming days, generating $14 million. An additional 500 vehicles are expected to be handed over next week, bringing in another $6 million.
The funds from this sale will be used to support the remaining employees working on recalls, software updates, and sales operations. However, the distribution of the remaining money received from American Lease remains a point of dispute, particularly with Fisker’s secured lender, Heights Capital Management.
Heights, which loaned over $500 million to Fisker in 2023, holds a claim to Fisker’s assets due to a breach in their agreement. The lender is considering filing a motion to convert the bankruptcy from Chapter 11 to Chapter 7, indicating a shift towards liquidation. While various parties involved in the case negotiate the terms, the focus remains on the efficient sale of assets to avoid a complete closure of the company.
As discussions continue regarding the asset claims and liquidation process, Fisker faces additional challenges related to its assets in Austria. With substantial factory equipment and unresolved insolvency proceedings, the company must navigate complex negotiations to include these assets in the ongoing sales.
Despite the legal complexities and financial disputes, the approval of the vehicle sale represents a critical step forward for Fisker as it seeks to address its financial obligations and facilitate a smooth liquidation process. The upcoming hearings in July will provide further insights into the company’s future and the resolution of outstanding claims by creditors and stakeholders.
