Financially strapped US electric car startup Fisker is halting production of its Ocean model. Production at contract manufacturer Magna in Graz will be interrupted for six weeks, the company announced on Monday.
Fisker previously owed $8.4 million in interest on convertible notes. The company said it consciously decided to file for bankruptcy to buy time to negotiate with investors.
There would actually have been sufficient money available for the interest. However, the company’s cash balance had fallen to $120.9 million as of Friday – less than a third of what was available at the end of last year.
New convertible bonds with a volume of up to $150 million, which Fisker sold at a discount to Polish investment fund CVI Investment, are now expected to bring new money into the treasury, according to mandatory documents filed with the US Securities and Exchange Commission. SEC).
Fisker has been in financial trouble for some time and is preparing for possible bankruptcy, according to a report. Now it is said that negotiations are currently underway with a car manufacturer about a collaboration. According to insiders, it is Nissan from Japan. It was recently said that an agreement could be signed later this month.
Only a quarter of the planned production
The company, founded by Danish car designer Henrik Fisker, has long been aware that selling its vehicles has proven to be more difficult than initially planned. In addition, the total cooling demand for electric cars is added. The original plan was to produce 40,000 vehicles per year in Graz, but last year this was down to 10,000.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
