Written by Akash Sriram and Zaheer Kachwala
(Reuters) – Fisker Inc. said on Monday that talks for a potential deal with a major automaker have collapsed, amid heightened uncertainty for the cash-strapped startup that suspended electric vehicle production last week. .
The name of the automaker with which it is negotiating has not been disclosed, but trading in the company's shares has been suspended until an announcement is made.
The company said the termination of negotiations led it to explore strategic options, including in-court and out-of-court reorganizations and capital market transactions.
“I can't say whether it will be next week or next year, but it's inevitable,” said Thomas Hayes, chairman of hedge fund Great Hill Capital, about the growing possibility that the company will file for bankruptcy protection.
Fisker also said it could not meet closing conditions related to its attempt to raise up to $150 million by selling convertible notes after missing interest payments.
Funding has been difficult for loss-making EV startups, which have struggled to ramp up production and deliver to customers amid fierce competition and a tough economy, with little prospect of revenue.
Separately, Fisker said it will ask investors to vote on the reverse stock split proposal at its April 24 shareholder meeting to maintain compliance with Nasdaq listing standards.
Reuters reported earlier this month that Nissan was in talks to invest in the company.
But earlier in the day, the Japanese automaker held an event where it announced its long-term business plan, including its EV strategy, and said it was looking for partners in the United States.
Fisker stock has lost more than 90% of its value this year after the company issued a going concern risk warning in February and paused investments in future projects until it secured a partnership with an automaker. lost.
It pivoted to a dealer-partner model earlier this year after delivering less than half of the vehicles it produced in 2023 due to logistical issues.
(Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Arun Koyur)
