Fisker Inc. reaches deal to resolve recalls for Ocean SUV

Fisker Inc., the beleaguered electric vehicle manufacturer, has secured a settlement with its creditors that will facilitate the liquidation of its assets while ensuring that owners of its luxury SUVs can continue to operate their vehicles. Attorney Daniel Shamah, representing the Fisker Owners Association, emphasized the owners' belief that the company has a responsibility to maintain the safety and operability of their vehicles through a Chapter 11 bankruptcy process. This plan includes provisions for the owners association to participate in the sale of Fisker’s intellectual property, which is vital for the ongoing functionality of the vehicles. The settlement comes as Fisker faces significant financial challenges, including a $681 million claim from U.S. Bank and multiple lawsuits from shareholders. The company, founded in 2016 by auto designer Henrik Fisker, went public in 2020 through a SPAC backed by Apollo Global Management. However, its financial stability has been called into question, particularly regarding its status as a secured creditor. The Committee of Unsecured Creditors has raised concerns about the legitimacy of Fisker’s claims, complicating the company's financial landscape. In a controversial move, Fisker executives, including Henrik Fisker, received bonuses totaling over $2 million shortly before the bankruptcy filing, raising eyebrows among stakeholders. Evan Scott, a Fisker Ocean owner, expressed his dismay at the bonuses, suggesting they were inappropriate given the company's financial turmoil. As the situation unfolds, the future of Fisker and its vehicles remains uncertain, with owners anxiously awaiting the outcome of the bankruptcy proceedings.