Prepare for the most reckless and controversial bankruptcy sale of the century! Fisker, the struggling electric vehicle startup, is poised to dump its unsold EVs in a deal that’s raising eyebrows. And why shouldn’t it? After all, the company has already bilked investors and left customers in the dark.
The devil is in the details, as the office of the U.S. Trustee (read: the Department of Justice’s watchdog arm) is objecting to the sale. But don’t worry, Fisker has a sweetheart deal with American Lease, a company that’s apparently willing to pay a fire sale price for the Ocean SUVs. How convenient.
Fisker’s defenders are, of course, insisting that the deal is a done deal, with even the committee of unsecured creditors giving it the thumbs-up. But at what cost? Critics are charging that the company has failed to properly market the vehicles, and that Fisker’s chief restructuring officer John DiDonato is trying to strong-arm the court into approving the sale.
And don’t even get me started on Fisker’s founders, Henrik and Geeta Gupta-Fisker. Their alleged $1 salaries are laughable, considering they stand to profit handsomely from the sale of the company’s assets. And what’s up with Ideal Motors, a dealer partner that’s objecting to the sale, claiming it wasn’t properly notified?
In short, this whole debacle smells like a money grab. Can anyone honestly say that Fisker’s unsold EVs will bring in a fair price without a real bidding process? And what’s to stop Fisker from reneging on its promises to the creditors once the sale is finalized?
A Delaware Bankruptcy Court judge will hear the parties’ arguments on Tuesday morning, so stay tuned for the drama. Will the judge greenlight this dubious deal, or will Fisker’s plans for a hasty sale be foiled?
