Fisker Receives Court Approval for SUV Sale Amid Bankruptcy Proceedings

Fisker, the beleaguered electric vehicle startup, has secured approval from a bankruptcy judge to sell over 3,000 Ocean SUVs to a vehicle leasing company, a transaction expected to yield up to $46.25 million. This decision by Judge Brendan L. Shannon facilitates the ongoing bankruptcy process as Fisker works to liquidate its remaining assets. The initial phase of the sale will see approximately 1,000 Ocean SUVs sold to American Lease for around $14 million. The approval comes in the wake of Fisker’s late third-quarter financial filing in 2023, which resulted in a breach of its agreement with Heights, a creditor. To address this breach, Fisker has pledged all its assets as collateral to secure the outstanding balance owed to Heights. During a recent court hearing, Heights indicated plans to convert Fisker’s Chapter 11 bankruptcy into a Chapter 7 liquidation, with attorney Scott Greissman describing it as “probably the most telegraphed chapter 7 conversion in history.” As the liquidation process unfolds, the committee of unsecured creditors and the U.S. Trustee’s office have contested Heights’ claims to Fisker’s assets. Additionally, it was disclosed that Heights has filed a $1 billion claim related to Fisker Austria GmbH. With the sale of vehicles to American Lease underway, attention now shifts to upcoming hearings scheduled for July 22 and July 29, where the future of Fisker’s assets will be further deliberated.