Another One Bites The Dust? Fisker Facing Bankruptcy As Federal Loan Payment Looms

Struggling electric vehicle start-up Fisker Automotive Inc. on Thursday declined to comment on a report that it may be forced to file for bankruptcy as early as next month if it fails to attract a buyer or strategic investor.

The California-based firm, backed by the Obama administration with a $529 million loan, has put most of its workers on furlough to save money, hired restructuring lawyers at Kirkland & Ellis LLP to prepare for a possible bankruptcy filing, the Wall Street Journal reported, citing people familiar with the matter. It faces an April 22 deadline to make a loan payment to the U.S. Energy Department.

"At this stage, with so many different factors and agendas in play, we are not offering any official comment," Fisker spokesman Roger Ormisher said Thursday.

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jeffgall - 3/29/2013 11:40:16 AM

+5 Boost

Will be terrible to be an owner of one of these. No dealer support if it breaks down, which it will.

This is why the government should not get involved in projects like these. If the natural supply and demand does not work, creating an artificial version is also not likely to work.

AlleVier - 3/29/2013 3:19:32 PM

+1 Boost

The government is and always has been involved in capitalism. Capitalism's never been pure. Until such time that the government fully withdraws support for every legacy industry (favorable legislation, bailouts, tax breaks, protectionist wars, subsidies, liability breaks) it ethically MUST risk investment in new industry as a counterbalance. Sometimes, specific ventures fail, but that's the risk required in order to succeed overall.

HughJass - 3/29/2013 3:04:08 PM

+4 Boost

Only in America does the government loan money out and then watch a company with new technology die. I'm sure Obama's masters in Beijing will be more than happy to pick up the pieces now that I've funded its development.

You really think the Chinese, Koreans or even Japanese would let one of their champions die? Perhaps if Fisker had more votes for the general election, then the government would be more obliged to write them some blank cheques. I'm surprised GM has asked Obama to buy Fisker for them in exchange for Democratic votes in the next election.

I suppose why make it America when those little yellow folks are willing to do it for free as long as they get credit for "inventing" the stuff.

iamdabest1 - 3/31/2013 1:24:20 AM

+2 Boost

they should have NEVER approved financing for a company that wanted to start selling cars for 100K !! did they think it would sell like camrys ???

ive seen the car on the road and driven it. it drives like trash. it drives like trash for a 100k car or even 50k.
no joke, my dads acura tsx felt better in every way.
the one and only thing awesome about the car is the looks. in my opinion its the best looking 4 door on the planet. better than tesla, bmw gran coupe, cls, s7, maserati quattroporte, rapide, etc
the problem was it cost 100k, wasnt reliable and drove worse than a honda accord .