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.


Fisker Karma is assembled in Finland, but has been plagued early-on by quality issues.

Speaking to the Economic Club of Chicago during the Chicago Auto Show says that relaunch of Karma production 'soon.'

Fisker Karma has been plagued by early start-up problems and is looking for additional investors, at least one said to be in China.

From promising Boston Power to struggling Fisker Automotive, Chinese firms are acquiring control of US, as well as, European firms pioneering advanced automotive technologies.

If style were the only measure, the Fisker Karma should be a success.

Craig Cole recounts the travails of Fisker Automotive and its search for a new lease on life.


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