Fisker Inc. is pausing manufacturing for the following 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 cost of about $8.4 million final week on its unsecured convertible notes due in 2026, based on a regulatory submitting Monday. Fisker warned it could not be capable to meet obligations to service its debt and “may wish 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 yr by way of final week’s shut.
Fisker additionally mentioned Monday that it plans to lift as a lot as $150 million by way of 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 will probably be organized in 4 tranches and topic to sure situations.
The disclosures expound on the dire state of Fisker, which warned late final month that there was substantial doubt about its capacity to remain in enterprise. The corporate has mentioned it’s going to lower 15% of its workforce after scuffling with manufacturing points, software program glitches and short-seller criticism.
Fisker mentioned it stays in negotiations with an unidentified giant automaker a couple of potential funding and joint improvement partnership. Bloomberg reported earlier this month that the corporate was in talks with Japan’s Nissan Motor Co., citing folks aware of the matter.
In its assertion, Fisker mentioned it has about 4,700 autos in stock price greater than $200 million. It’s pausing manufacturing in Graz, Austria, beginning this week to promote down its provide of already-built EVs.
