Fisker is looking to sell its remaining inventory of all-electric Ocean SUVs for an average price of $14,000 per vehicle. The Delaware Bankruptcy Court is currently reviewing the request for approval of this sale, which would involve offloading 3,231 finished EVs to a New York-based vehicle leasing company for $46.25 million. This price represents a significant drop from the original starting price of around $70,000 for these vehicles.
In a recent hearing, lawyers representing Fisker’s unsecured lenders raised concerns about not receiving proceeds from the sale. Fisker currently owes approximately $1 billion to all unsecured creditors. The total value of Fisker’s other assets remains unclear, as the startup filed a motion to delay the release of this information while it is being compiled.
The leasing company, American Lease, has agreed to purchase the Ocean EVs and mainly offers vehicles to ride-hail drivers in the New York City area. The company will not lease any of the Oceans until open recalls are addressed. The sale agreement stipulates that American Lease cannot resell the vehicles for 12 months and includes varying prices based on the condition of the vehicles.
Fisker is aiming to complete the sale quickly to cover vital business expenses and payroll obligations. The company plans to sell an initial 200 Oceans to American Lease by July 12, but a newly-reported issue with the water pumps on the Ocean needs to be resolved first. Fisker’s CEO and founder, Henrik Fisker, along with other key executives, are still on the payroll, though modifications to their salaries are being considered.
The U.S. Trustee’s office and other parties have expressed concerns about the speed at which the sale is being pushed through and the lack of legal representation for unsecured creditors. A new hearing has been scheduled for July 11 to address these issues and provide further clarity on Fisker’s financial obligations.
Once the sale is finalized, Fisker will not be responsible for vehicle repairs or maintenance, and the vehicles will be sold “as is” with no warranties. Additionally, Fisker will provide American Lease with access to relevant source code and proprietary software elements.
Overall, the sale of Fisker’s Ocean inventory has been approved by the company’s largest secured creditor, Heights Capital Management. However, concerns remain about the implications of the sale for unsecured creditors and the potential transition to a Chapter 7 liquidation process. The situation is still evolving, with further details expected to emerge in the coming weeks.
