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Fisker could go bankrupt by Friday

Things are not looking good for Fisker Automotive, which laid off 75% of its employees last week. Sources are now telling Reuters that attorneys for the struggling automaker have drawn up bankruptcy documents and are ready to file them as early as Friday.

Fisker reportedly has about $30 million in cash left and is scheduled to reimburse the first $10 million of the $200 million loan it once received from the U.S. Department of Energy (DoE) on April 22nd.

Doomed by the delayed launch of the Karma plug-in hybrid sedan, a number of recalls following an incident where a Karma caught fire, interrupted production, and the recent bankruptcy of its battery supplier (A123 Systems), Fisker is now being pressured by the DoE to give the money back.

There's still a chance that an investor will buy Fisker, but every passing day reduces the likelihood of that scenario.

Source: Reuters


Photo: Fisker