Fisker in Bankruptcy: Hope for Car Owners, but No Rescue for Shareholders

Fisker faces liquidation after a bankruptcy plan approved by a U.S. bankruptcy court allows car owners to continue driving their vehicles for years. However, the shareholders of the insolvent electric car company will receive nothing. This decision follows an investigation by the U.S. Securities and Exchange Commission (SEC), which is examining possible securities law violations at Fisker. The SEC, which issued a subpoena against Fisker in August, is demanding the retention of business documents as part of the bankruptcy plan. Fisker founder, Henrik Fisker, and his wife, Geeta Gupta-Fisker, are also facing legal challenges from shareholders who accuse them of breaches of fiduciary duties and securities laws. The shareholders criticized Henrik Fisker's media appearances, where he downplayed the company's financial difficulties. The bankruptcy plan for Fisker includes agreements for financing recalls that the company still has pending, such as defective brakes and water pumps in the Ocean SUVs. A significant part of this agreement is that the Fisker community will have access to cloud-based software updates, secured by the company American Lease, which acquired a large portion of the remaining Fisker vehicles. Despite the difficult situation, Brandon Jones, the president of the Fisker Owners' Community, expressed optimism about the plan and the future maintenance of the vehicles. The background of this plan is that Fisker faced financial difficulties and eventually declared bankruptcy after failing to secure a strategic investment or sale of the company. Many shareholders and creditors are facing significant losses due to the lack of major successes and the unfulfilled promise of innovation from the brand, which was launched as a Tesla competitor.