Fisker, the electric vehicle startup currently undergoing bankruptcy proceedings, is facing opposition to a proposed deal that would allow the company to offload its unsold EVs and potentially pay back some of its creditors. The objection to the sale is coming from the U.S. Trustee’s office, which oversees bankruptcy administration and aims to ensure the integrity and efficiency of the bankruptcy system.
However, the deal has received broad support from various parties involved. Fisker’s largest secured lender, the committee of unsecured creditors, and the newly-formed Fisker Owners Association all approve of the sale. The only other entity that objected to the sale was Ideal Motors, one of Fisker’s dealer partners, which argued that it wasn’t properly notified of the proposed sale.
The sale would involve American Lease, a company that services ride-hail drivers in the New York City area, acquiring all of Fisker’s Ocean SUVs configured for the North American market. The deal could amount to around $46.25 million. A hearing is scheduled for Tuesday where arguments will be made in front of a Delaware Bankruptcy Court judge, who will ultimately decide whether or not to approve the sale.
Fisker has stated that it needs the sale to go through quickly in order to provide a financial buffer during the bankruptcy proceedings. The company’s total assets and their value are still being compiled and are not yet clear. Fisker has claimed to have assets between $500 million and $1 billion.
The objection from the Trustee’s office highlights concerns about the lack of information provided by Fisker regarding efforts to shop around the fleet to other potential buyers, how the sale was marketed, and how the vehicles were valued. The office accuses Fisker of offering their inventory at fire sale prices without maximizing its value through adequate marketing. They also criticize Fisker for rushing through the sale by scheduling an emergency hearing on the day before a national holiday.
Fisker’s lawyers previously argued that a rush sale was necessary to make payroll and keep the bankruptcy proceeding alive. However, they have since reevaluated the company’s assets and decided to allow more input on the sale, pushing back the timeline by another week or two.
The Trustee’s office also seeks more information about why American Lease initially agreed to buy 2,000 Ocean SUVs for a higher average price before the bankruptcy. This raises questions about the deal’s legitimacy and its potential impact on Fisker’s financial situation.
Despite the objections and concerns raised, the committee of unsecured creditors now supports the sale to American Lease, believing that it was adequately marketed and represents the highest and best offer under the circumstances. They argue that the sale transaction maximizes the value of Fisker’s assets for the benefit of all stakeholders.
In conclusion, Fisker’s proposed sale of its unsold EVs is facing opposition from the U.S. Trustee’s office, but it has garnered support from other parties involved. The outcome of the upcoming hearing will determine whether or not the sale will be approved, allowing Fisker to generate funds and navigate through its bankruptcy proceedings.