Karma News: Rumorpile: Fisker To File Chapter 11 Bankruptcy This Week?

[William Maley]

By William Maley

Staff Writer - CheersandGears.com

April 10, 2013

It seems the end is close for Fisker. Reuters is reporting that Fisker could be filling for Chapter 11 bankruptcy this week due to pressure of the U.S. Department of Energy who want the company to pay back nearly $200 million in government loans.

A source tells Reuters that Fisker's lawyers have drawn up the documents needed to file for bankruptcy, and are ready to go within the next few days.

Fisker and the Department of Energy's relationship has been strained over the past few months due to missing milestones for the loans, not building any vehicles since last summer, and number of other problems. The company has been has been trying to renegotiate terms of a payment due on April 20th with the Department of Energy. However, the Department of Energy said enough was enough and is pushing Fisker in bankruptcy.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[G. David Felt]

The whole unfolding of Fiskers makes one think they deliberately did not believe they would have to pay back the EPA. The fact the have not built anything for 9 months or so would tend to also imply they were happy to use tax dollars to do nothing.

Good riddance, I hope the EPA takes everything and then sells it to an American company that can actually build something.

[balthazar]

The Govt's track record WRT 'green' companies investment is DISMAL; more like criminal negligence. You can't force the market and lawmakers are clueless.

If Fisker goes belly up it's a shame, but a fresh $100K car is never NOT going to have an uphill battle, no matter what's underhood or how slinky it looks.

[G. David Felt]

More and more I am starting to really hate the waste of money on technologies that are not ready for prime time use by the masses.

[ocnblu]

Who wants to be a pall bearer?

[G. David Felt]

Why waste money on a funeral? They already blew 200 million.

[G. David Felt]

Thinking on this EPA should just take the technology and share it with GM and Ford. That way the american auto companies can use it to benefit America and jobs.

For those that say what about the other investors? Well the EPA can sell the rights to use the technology to them, be it China, Japan, Korea, Euro, etc. That way those funds can go back to the independant investors and if there is anything left over it can go back to the original investors/owners.

[G. David Felt]

Found a great editorial on why we do not need Fisker.

http://www.technologyreview.com/view/514171/why-we-dont-need-fisker/?goback=%2Egde_1452137_member_236057702

Here is another great write up on why Tesla survived and Fisker will not.

http://www.technologyreview.com/news/513151/why-tesla-survived-and-fisker-wont/

I have to say that these are spot on in regards to these auto's.