The decline of Fisker Automotive has been taking place for quite a while now, so the writing was on the wall with this one: the company has filed for chapter 11 bankruptcy protection after a group of investors decided to try and resurrect the company.
Hybrid Technology LLC coughed up $25 million to purchase Fisker’s $168 million loan by the United States Department of Energy, meaning that the company effectively lost $143 million while trying to develop and market a plug-in hybrid supercar.
The company has been moving towards this moment for some time: back in April they fired much of their staff to save what little money they had left, and just last month the Department of Energy put Fisker’s loan up for auction.
It’s a sad day for one of the more exciting – and beautiful – cars to grace the market in recent years. But all is not lost, as Hybrid Technology LLC will have an opportunity to jumpstart the drowning company. And some remain optimistic: in a statement, Fisker’s Chief Restructuring Officer Mark Belinson said,
“We believe the sale to Hybrid and the related chapter 11 process is the best alternative for maximizing Fisker Automotive’s value for the benefit of all stakeholders. We believe that Fisker Automotive technology and product development capability will remain a guiding force in the evolution of automotive industry under Hybrid’s leadership.”
We all hope that Belinson is right. But in the meantime, it doesn’t look good for Fisker Automotive.
Photo Credit: Fisker Automotive