After furloughing its US workers, Fisker Automotive has hired a law firm for a potential bankruptcy, Reuters reports, citing a person familiar with the process.
Kirkland & Ellis is advising the California-based maker of the extended-range plug-in Karma for a potential bankruptcy filing, which hasn't produced a car in about eight months and is losing interest from two prospective China-based buyers. Fisker declined to comment to Reuters.
Fisker, which has raised $1.2 billion in equity, has also had about $336 million of its $529 million line of credit with the feds frozen because of its failure to meet certain production mandates. Meanwhile, China-based companies Dongfeng Motor Group and Zhejiang Geely Holding Group have stepped away from a potential acquisition because of Fisker's loan terms with the feds. One payment on the loan is due in April.
In March, co-founder and namesake Henrik Fisker resigned as executive chairman of the company. Mr. Fisker and Fisker CEO Tony Posawatz were believed to have disagreed over whether the company could feasibly grow with its current cash situation.