Fisker’s Chapter 11 bankruptcy process has hit a major roadblock, as American Lease, the company set to acquire Fisker’s remaining fleet of SUVs, is considering backing out of the deal due to technical issues. According to reports, American Lease has filed an emergency objection to the liquidation plan, citing concerns over Fisker’s ability to transfer crucial vehicle information to a new server not owned by the bankrupt company.
The purchase agreement between Fisker and American Lease, approved in July, has been a crucial lifeline for the struggling electric vehicle startup. American Lease has already paid tens of millions of dollars to Fisker, allowing the company to fund its bankruptcy proceedings and settle debts. The funds have also been vital in preparing Fisker to liquidate approximately $1 billion in assets previously under the control of an insolvent Austrian subsidiary.
However, last week Fisker informed American Lease that transferring the vehicle information to a new server might not be possible. This week, the startup confirmed that the transfer is indeed unfeasible. American Lease’s lawyers emphasized the significance of this development, stating that the leasing company cannot overstate the importance of this news, conveyed to it only after it has paid tens of millions of dollars under the purchase agreement.
The inability to transfer the vehicle information to a new server poses a significant problem for American Lease, as the company requires this data to operate the SUVs once Fisker is dissolved. In light of this revelation, American Lease is seeking a delay in the bankruptcy court hearing scheduled for Wednesday and is requesting permission to conduct expedited and targeted discovery of Fisker and its representatives to determine when the startup became aware of this critical issue.
This latest development adds to the already chaotic week for Fisker’s bankruptcy proceedings. The U.S. Securities and Exchange Commission has filed an objection, revealing an ongoing investigation into Fisker, while the Department of Justice, on behalf of the National Highway Traffic Safety Administration, has claimed that Fisker’s attempt to make owners pay for certain recall repairs is illegal. Additionally, the landlord of Fisker’s former headquarters has stated that the startup abandoned the premises, leaving it in complete disarray.
