Fisker Bankruptcy Gets Ugly

Bankrupt company seeks to deny group of 157 fired employees from $3.8 million in compensation as unsecured creditors.

Published: 27-Dec-2013

Fisker Automotive is arguing that a group of employees fired from the company earlier this year should not be able to receive compensation as part of its bankruptcy case.

Fisker, the plug-in hybrid car company, filed for bankruptcy in November after suffering a series of setbacks in its efforts to reopen the General Motors plant on Boxwood Road.

The company, as part of its bankruptcy filing, put aside $500,000 for hundreds, if not thousands, of unsecured creditors to split. Unsecured creditors are people or companies owed money with no collateral. Although the Delaware Economic Development Authority, which gave Fisker about $20 million in loans and grants, had collateral, it is being treated as an unsecured creditor in this case because the remaining collateral has no value.

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