Fisker Inc. is pausing manufacturing for the subsequent six weeks because the electric-vehicle maker seems to be to rein in stock and keep away from probably having to file for chapter.
The corporate didn’t make a required curiosity fee of about $8.4 million final week on its unsecured convertible notes due in 2026, in line with a regulatory submitting Monday. Fisker warned it might not be capable to meet obligations to service its debt and “may need to hunt safety underneath relevant chapter legal guidelines.”
Fisker shares fell as a lot as 14% shortly after the beginning of normal buying and selling. The inventory had plummeted 90% this 12 months by final week’s shut.
Fisker additionally mentioned Monday that it plans to boost as a lot as $150 million by a financing cope with the holder of its 2025-dated convertible notes. The Los Angeles-based EV maker didn’t establish the present investor and mentioned the funding can be organized in 4 tranches and topic to sure circumstances.
The disclosures expound on the dire state of Fisker, which warned late final month that there was substantial doubt about its potential to remain in enterprise. The corporate has mentioned it is going to lower 15% of its workforce after combating manufacturing points, software program glitches and short-seller criticism.
Fisker mentioned it stays in negotiations with an unidentified massive automaker a couple of potential funding and joint growth partnership. Bloomberg reported earlier this month that the corporate was in talks with Japan’s Nissan Motor Co., citing individuals accustomed to the matter.
In its assertion, Fisker mentioned it has about 4,700 autos in stock value greater than $200 million. It’s pausing manufacturing in Graz, Austria, beginning this week to promote down its provide of already-built EVs.
