iStock.com/Victor Golmer
Fisker Seeks Bankruptcy Court Approval for Sale of EVs at Average Price of $14K
July 4, 2024
Fisker has found a prospective buyer for the rest of its all-electric Ocean SUV stock and has petitioned for sale approval from the judge covering its Chapter 11 bankruptcy case in Delaware.
Subject to court approval, Fisker plans to sell 3,231 fully assembled electric vehicles to a vehicle leasing company based in New York for $46.25 million. This equates to around $14,000 for a vehicle. This is a sizable reduction from their original starting price of approximately $70,000. These price points are even less than the discounted rates Fisker had implemented during its financial downturn.
Fisker’s request to approve the transaction could spark significant debate in its Chapter 11 bankruptcy case. At the first hearing on June 21, representatives for the company’s non-secured creditors voiced worries about not benefiting from the sale’s proceeds. The company has a debt of nearly $1 billion to these creditors.
Fisker’s remaining assets and their potential worth remain uncertain. On Monday, the company’s attorneys submitted a request to postpone disclosing this information because it is still being gathered.
American Lease, mainly serving ride-hail drivers in New York City, has been identified by The Wall Street Journal as the leasing company interested in Fisker’s EVs. With NYC’s mandate for zero-emission fleets by 2030, American Lease has committed to delaying the leasing of the Oceans until all outstanding recalls have been resolved.
On May 30, two weeks before the company filed for Chapter 11 bankruptcy, American Lease agreed to purchase 2,100 Ocean EVs from Fisker. By June 30, the company had expanded its offer to acquire all 3,231 North America-ready Ocean EVs. The deal does not involve Canadian-configured vehicles. Under the agreement, American Lease is restricted from reselling the vehicles for 12 months. The purchase prices vary, with $3,200 for previously titled vehicles, $16,500 for those in good functioning condition, and $2,500 for damaged units.
The company’s attorneys are working to fast-track the sale. They wrote in a motion seeking swift approval that if not concluded by July 12, they will “be unable to fund vital business expenses … necessary to effectuate an orderly liquidation.”
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