DoE Swooped Up More Than Half Of Fisker's Cash Reserve
The Department of Energy, perhaps in fear of losing the entirety of the $193 million it loaned out to Fisker Automotive, "recouped" $21 million from the California start-up's reserve cash account on April 11th of this month.
Fisker was also due to make a payment on the $193 million dollar loan yesterday, thought to be around $10 million, but sources not wishing to be identified at the DoE, have reportedly said that deadline has come and gone.
"The department recouped the company's approximately $21 million reserve account -- funds that came from the company's sales and investors, not our loan- and will apply those funds to the loan." - DOE spokesperson, Aoife McCarthy
The Fisker Atlantic Will Almost Certainly Not Make it to Production Now
The DoE had originally granted a loan of $528.7 million to Fisker, but cut those funds off in May of 2012 after Fisker failed to reach benchmarks set out in the agreement.
A source at the DoE, speaking on the condition of anonymity, said that before the raid on Fisker's remaining cash, the company had "less than 30 million" left on hand, and was struggling to avoid breaching a covenant in its deal with the Department.
We think that perhaps a $15 million dollar settlement with bankrupt US battery maker A123 by Fisker earlier this month, prompted the government to take action while that money was still available to be had.
Previous to this news, Fisker had laid off almost all its workers while attempting to conserve cash in hopes of finding a partner to save the business, as well as hired noted bankruptcy law firm Kirkland & Ellis, in case that search came up empty.
Last week, Fisker was sued for over half a million dollars for unpaid website services, was hit with a federal lawsuit for unfair treatment of employees, and faced an eviction notice on its California HQ. So one might assume Fisker is in a spot of trouble at the moment.