Fisker has found a buyer for its remaining inventory of all-electric Ocean SUVs and is seeking approval from the Delaware Bankruptcy Court overseeing its Chapter 11 proceedings to move forward with the sale.
If the sale is approved, Fisker plans to sell 3,231 finished electric vehicles to a New York-based vehicle leasing company for $46.25 million, averaging about $14,000 per vehicle. This price is significantly lower than the original starting price of around $70,000, which some of these vehicles once fetched. It’s also below Fisker’s discounted prices as it spiraled toward bankruptcy.
This sale could become a key point of contention in the bankruptcy case. During a hearing on June 21, lawyers for Fisker’s unsecured creditors raised concerns that they might not receive any of the proceeds from the sale. Fisker currently owes around $1 billion to its unsecured creditors.
The overall value of Fisker’s remaining assets is still unclear, as the company’s legal team filed a motion on Monday to delay the release of that information, citing that it is still being compiled.
The leasing company, reportedly American Lease, primarily offers vehicles to ride-hailing drivers in New York City, where regulations require fleets to be zero-emission by 2030. The company has agreed to hold off on leasing the Oceans until outstanding recalls are addressed.
Originally, American Lease agreed to purchase 2,100 Ocean EVs on May 30, just two weeks before Fisker filed for bankruptcy. On June 30, they extended the offer to buy all 3,231 North America-configured Oceans, excluding vehicles located in Canada. American Lease will not be allowed to resell the vehicles for a year. It plans to buy the EVs on a sliding scale, paying $3,200 for previously titled vehicles, $16,500 for those in good working condition, and $2,500 for damaged ones.
Fisker’s lawyers are pushing to expedite the sale. In a motion, they argued that the company would be unable to meet crucial business expenses, including payroll, if the sale isn’t completed by July 12.
During an emergency hearing, Fisker requested approval to sell an initial batch of 200 Oceans to generate $2.8 million for payroll and other expenses. However, before the sale proceeds, Fisker must resolve an issue with the water pumps on the vehicles, which will be handled by some of the company’s remaining 179 employees. Fisker is in the process of reducing its headcount to 138, according to Chief Restructuring Officer John DiDonato.
DiDonato also confirmed that CEO Henrik Fisker, co-founder Geeta Gupta-Fisker, and other top executives remain on the payroll, though he did not disclose their current salaries, which are reportedly undergoing modifications.
Linda Richenderfer, a lawyer for the U.S. Trustee’s office, expressed concern about how quickly Fisker’s lawyers are attempting to push the sale, especially since the committee of unsecured creditors still lacks legal representation. Her concerns were echoed by lawyers for the Fisker Owners Association and U.S. Bank, which is owed over $600 million. During the hearing, Richenderfer also questioned whether Fisker had enough cash to meet upcoming payroll payments. DiDonato and Fisker’s legal team struggled to provide clear answers, leading to confusion among the court officials.
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A new hearing has been scheduled for July 11, during which Fisker and its restructuring team are expected to provide more detailed explanations regarding the urgency of the sale.
Once the sale is completed, Fisker will have no further obligation to repair or maintain the vehicles, and they will be sold “as is” without any warranties. The company will also give American Lease access to the necessary software and source code to operate the vehicles.
Fisker’s largest secured creditor, Heights Capital Management, which loaned the company over $500 million in 2023, has approved the sale. While the sale might only cover a fraction of the debt Fisker owes Heights, it represents a significant step toward resolving the company’s financial troubles. However, unsecured creditors fear the sale could lead to a Chapter 7 liquidation, leaving them with even less.
