Fisker asks bankruptcy court to sell its EVs at average of $14,000 each

Fisker has a buyer lined up for its remaining inventory of all-electric Ocean SUVs and has requested approval from the Delaware Bankruptcy Court judge overseeing its Chapter 11 case. If approved, Fisker can sell 3,231 finished EVs to a New York-based leasing company for $46.25 million, which is significantly less than their original starting price.

This sale could be a focal point in Fisker’s bankruptcy proceedings, as concerns have been raised by the company’s unsecured lenders about not receiving proceeds from the sale. Fisker currently owes around $1 billion to its unsecured creditors, and the total value of its other assets is still unclear.

The leasing company, identified as American Lease, primarily offers vehicles to ride-hail drivers in New York City and has agreed to address open recalls before leasing any of the Oceans. The company initially agreed to purchase 2,100 Ocean EVs before increasing the offer to buy all 3,231 ready-for-sale vehicles.

Fisker’s lawyers are pushing for expedited approval of the sale to cover vital business expenses and payroll. CEO Henrik Fisker and COO Geeta Gupta-Fisker are still on the payroll, with modifications to their salaries, as the company works to finalize the sale and address any outstanding issues with the vehicles.

A new hearing has been scheduled for July 11 to address concerns raised by creditors and ensure transparency in the sale process. Once the sale is complete, Fisker will have no obligation for repairs or maintenance of the vehicles, and American Lease will have access to relevant source code and software elements.

Heights Capital Management, Fisker’s largest secured creditor, has approved the inventory sale, which will only cover a fraction of the debt owed to them. The sale was necessitated after Fisker pledged all its assets as collateral to repair a breach with Heights due to a late financial report filing.