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Electric vehicle company Fisker Group Inc. has filed for Chapter 11 protection in Delaware bankruptcy court, citing over $100 million in debt. The filing comes just months after the collapse of a potential partnership with a major automaker, which derailed the startup's efforts to secure new financing.

Financial Details and Future Plans

In a late Monday filing, Fisker reported holding $500 million to $1 billion in assets and $100 million to $500 million in debt. The company, which has 200 to 999 creditors, is in "advanced discussions" regarding the sale of its assets and debtor-in-possession financing.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently," a Fisker spokesperson said in a statement.

EV startup Fisker files for bankruptcy : Operational Challenges

California-based Fisker began distributing its electric Ocean SUV last year after going public in 2020. Initially, the company sold cars directly to consumers but pivoted in January to working with dealerships to accelerate sales and boost revenue.

In late February, Fisker expressed "substantial doubt" about its ability to continue operations and indicated the need for additional financing. The company reported a net loss of $463.6 million for the fourth quarter of 2023, attributing the shortfall to supply chain issues and the challenges of direct sales.

Failed Negotiations and Production Pauses

Fisker was negotiating with a "large automaker" and had an agreement with an existing investor for $150 million. However, in March, the automaker withdrew from discussions, leaving Fisker unable to meet the conditions for the financing deal.

That same month, Fisker announced a six-week production pause to "align inventory levels and progress strategic and financing initiatives."

EV startup Fisker files for bankruptcy : Limited Fundraising

In May, Fisker reported raising only $3.46 million from an existing investor through an offering of senior secured notes due June 24, 2024. Fisker, founded by designer Henrik Fisker and his wife Geeta Gupta-Fisker, is the latest electric vehicle startup to seek bankruptcy protection. Other EV companies, including Charge Enterprises, Proterra, and Lordstown Motors, have also entered Chapter 11 in the past year.

A History of Financial Struggles

This is the second electric car company founded by Henrik Fisker to go bankrupt. Fisker Automotive, which developed plug-in hybrid electric vehicles, filed for Chapter 11 protection in 2013.

A Fisker representative declined to comment on Tuesday. The case has been assigned to U.S. Bankruptcy Judge Thomas M. Horan. Fisker is represented by Davis Polk & Wardwell LLP and Morris Nichols Arsht & Tunnell LLP.