Fisker Inc. won bankruptcy court permission to sell its remaining fleet of electric SUVs after slashing the price on glitchy vehicles that were sold t
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Fisker Inc. won bankruptcy court permission to sell its remaining fleet of electric SUVs after slashing the price on glitchy vehicles that were sold to some customers for as much as $70,000.
Judge Brendan L. Shannon said at a hearing in Delaware Tuesday he’d approve the sale of roughly 3,300 Fisker vehicles for as much as $46.25 million to American Lease LLC, a company that leases cars and SUVs to New York City-based Uber and Lyft drivers. Fisker vehicles “in reasonably good working order” could be sold to American Lease for $16,500, while damaged vehicles requiring at least $5,000 in repairs could fetch as little as $2,500, according to court papers.
The price represents a steep discount compared to what some customers paid for the flagship Fisker Ocean, at a time when other buyers are still having problems getting their vehicles serviced and have already taken big losses. The deal marks a symbolic end for an EV maker that promoted its vehicles as the “future of clean mobility,” but then suffered a series of production and delivery delays that hindered the roll-out of its flagship SUV and ultimately resulted in its Chapter 11 filing in June.
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The Justice Department’s bankruptcy watchdog challenged the deal, claiming the transaction represented a “fire sale” of Fisker’s remaining fleet. But company advisers said the transaction was the best available.
Judge Shannon said the sale needed to be approved quickly because Fisker was running low on cash, adding that few buyers besides American Lease could acquire so many vehicles at once.
“It might be regarded as miraculous that a deal came together at all,” he said.
A lawyer representing a group of customers who own Fisker Oceans said Tuesday they support the sale in light of the company’s substantial financial constraints.
Fisker Chief Restructuring Officer John DiDonato said in a sworn statement that American Lease was “uniquely positioned to purchase the Debtors’ EVs and the Debtors’ best prospect to monetize the Fisker Inventory.” The case is Fisker Inc., number 24-11390, in the US Bankruptcy Court in the District of Delaware.
First Published Date: 17 Jul 2024, 05:55 AM IST