Troubled electric vehicle company Fisker’s Chapter 11 bankruptcy proceedings have encountered a significant obstacle, as American Lease, the company set to purchase Fisker’s remaining fleet of SUVs, may back out of the deal due to technical issues.
TechCrunch reports that Fisker’s Chapter 11 bankruptcy process has hit a major snag. American Lease, a New York-based leasing company that agreed to purchase Fisker’s remaining fleet of over 3,000 electric Ocean SUVs, has filed an emergency objection to the liquidation plan. The objection stems from Fisker’s revelation that it may be unable 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 lifeline for the struggling EV startup. American Lease has already paid “tens of millions of dollars” to Fisker, enabling the company to fund its bankruptcy proceedings and settle debts. The funds have also been crucial in preparing Fisker to liquidate approximately $1 billion in assets that were previously under the control of an insolvent Austrian subsidiary.
Breitbart News previously reported on Joe Biden’s cozy relationship with Fisker:
In 2009, Biden promised that $529 million in new Department of Energy loan guarantees to Fisker Automotive to produce electric cars in Delaware would provide “billions of dollars in good, new jobs.” Four years later, Fisker filed for bankruptcy — without producing a single car in the U.S.
As Breitbart News reported at the time, Fisker was granted the loan guarantees to produce a hybrid sports car called the “Karma” for the luxury auto market, with a price of $103,000. High-profile political figures lobbied for the deal. Fisker filed for bankruptcy failed in 2013 and taxpayers lost $139 million on the venture. Republicans noted: “The jobs that were promised never materialized and once again tax payers are on the hook for the administration’s reckless gamble.”
Along with failed solar panel manufacturer Solyndra, Fisker was one of the highest-profile failures of the stimulus, which Biden oversaw, and which he has touted on the campaign trail as proof of his ability to handle America’s economic recovery.
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 significance of this unwelcome news, conveyed to it only after it has paid [Fisker] 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 requesting a delay in the bankruptcy court hearing scheduled for Wednesday and is seeking 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 tumultuous week for Fisker’s bankruptcy proceedings. The U.S. Securities and Exchange Commission’s objection revealed an ongoing investigation into Fisker, while the Department of Justice, on behalf of the National Highway Traffic Safety Administration, claimed that Fisker’s attempt to make owners pay for certain recall repairs is illegal. Additionally, the landlord of Fisker’s former headquarters stated that the startup abandoned the premises, leaving it in “complete disarray.”
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
