Fisker Stumbles First In Europe: EV Startup Files For Bankruptcy Protection In Austria

Fisker Inc‘s FSRN Austrian unit Fisker GmbH on Tuesday voluntarily filed for bankruptcy protection as the beleaguered EV maker continues to struggle to solve its financial issues.

What Happened: The Austrian unit said in a statement that no other entities of Fisker are included in the restructuring. Other entities will continue to operate in the ordinary course, it added.

“A self-administered restructuring proceeding allows Fisker Austria to protect its business while it conducts a value-maximizing strategic transaction or other sale of assets,” the unit said while adding that it will continue to pay its employees, sell vehicles, and service them.

Fisker’s Ocean SUV is manufactured at Magna International Inc‘s manufacturing plant in Graz, Austria.

Why It Matters: Fisker in February warned that it may not have enough funds to operate over the year. The company's shares were delisted from the New York Stock Exchange the following month owing to low share prices and potential investment talks with a major automaker collapsed, leaving Fisker’s financial future uncertain.

Late last month, the company said in a filing that it expects to seek protection under bankruptcy laws within 30 days if unable to receive waivers from its debt holders or raise enough capital to settle its dues.

The company had unrestricted cash and cash equivalent of just $53.9 million as of April 16.

Earlier this week, it was reported that the company is closing down its Manhattan beach headquarters and relocating employees to its La Palma site located 40 miles away from the headquarters.

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Photo courtesy of Fisker