- Bankrupt electric vehicle maker Fisker is seeking court approval to sell its inventory at a low price.
- Techcrunch reported that its cars would be sold to American Lease for 20% of what other companies paid for them.
- The company says it needs to start selling the vehicles soon to be able to meet payroll this month.
Fisker, the bankrupt Tesla competitor, has asked a court for permission to offload its unsold cars in the United States for a fraction of the price they were selling for last year, according to court records and news reports.
The company wants to sell just under 3,300 Ocean electric SUVs to American Leasing, lawyers said at a hearing Wednesday, reported by TechCrunch.
American provides vehicles to thousands of Uber and Lyft drivers in New York City. The Wall Street Journal reported last month that American was interested in acquiring Fisker’s fleet.
Fisker filed for Chapter 11 bankruptcy in June after years of turmoil and unprofitable operations. Even as it prepared to deliver vehicles last year, it was scavenging parts from the personal EVs of the company’s CEO and CFO, Business Insider reported last month.
Fisker $46.25 million settlement
The vehicles to be purchased by American Leasing would be sold as-is, Fisker said, with some in good condition but others in need of repairs.
The deal is valued at up to $46.25 million, an executive said in a court filing, plus certain other incidental costs. The average cost of each Fisker vehicle sold under these terms would be about $14,000, a far cry from the $70,000 price tag for a fully loaded vehicle before the company began offering aggressive discounts last year.
Citing bankruptcy filings, TechCrunch reported that Fisker still has 179 people on payroll, a number it plans to cut. It said selling 200 of the vehicles to American Leasing on an abbreviated schedule would bring in crucial cash to make payroll next month.
There is no guarantee that the deal will go through, however. Some creditors, including people who have previously purchased Fisker vehicles, are concerned that the company will run out of resources to pay its debts and support owners.
“Bottom line is, there are ways to capture funds,” Linda Richenderfer, an attorney with the U.S. Trustee’s Office, which is part of the Justice Department that oversees bankruptcies, said at Wednesday’s hearing.
Fisker was ordered to provide an update by July 9. The company’s request to sell its fleet is due to be discussed next Thursday, according to a court filing filed July 4.
