Fisker may seek bankruptcy protection in 30 days if unable to meet debt obligations
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Fisker may have to file for bankruptcy protection within 30 days if it does not get adequate relief from its creditors and enough liquidity to meet its current debt obligations. The cash-strapped electric vehicle (EV) start-up failed to make an interest payment of about US$8.4 million on some notes due in 2026 during a 30-day grace period. Talks with a large automaker for a potential investment collapsed last month, leading to the need for in- or out-of-court restructurings and capital market transactions. Fisker's cash balance reduced to US$325.5 million in 2023 from US$736.5 million in 2022. The company plans to further reduce its workforce and streamline its operations. It had previously cut the prices of its 2023 Ocean sport utility vehicle models in March to boost sales and raise capital. Fisker has been facing intense competition and customers holding back purchases due to higher borrowing costs and economic uncertainty.

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