July 25, 2024

Fisker Seeks Permission to Sell Remaining Oceans at $14,000 Each from Judge

Fisker officially declared bankruptcy last month, and despite a clearance sale that saw prices of its Ocean EV drastically reduced, the automaker still has several thousand unsold vehicles. Fisker may have identified a potential buyer for these EVs, and according to TechCrunch , they are willing to sell them at a very low price.

According to TechCrunch, Fisker is seeking permission from the bankruptcy court to sell the remaining 3,321 Oceans in its inventory to American Lease, a leasing company based in New York, for a total of $46.25 million. This amounts to just $13,926 per vehicle. This proposed deal would make it the most affordable sale of Fisker Oceans to date. Originally, a Fisker Ocean had a price range of $41,437 to $63,937 earlier this year.

However, obtaining approval for the sale may face challenges. As per TechCrunch, Fisker’s lenders are concerned about recovering their dues.

The motion requesting approval of the sale could become the next contentious issue in Fisker’s Chapter 11 bankruptcy proceedings. Lawyers representing the company’s unsecured lenders have already expressed apprehension in the initial hearing, held on June 21, about the realization of proceeds from such sales. Fisker owes approximately $1 billion in total to its unsecured creditors.

What does American Lease intend to do with thousands of EVs from a struggling automaker? It appears that American Lease plans to utilize them for ridesharing purposes. The company leases vehicles to rideshare drivers in New York and aims to achieve zero emissions by 2030, with the help of these Oceans. American Lease is eager to acquire these vehicles, to the extent that Fisker and American Lease had a sales agreement for the Oceans even before the bankruptcy filing.

American Lease initially agreed to purchase 2,100 Ocean EVs on May 30, just two weeks prior to Fisker’s Chapter 11 bankruptcy filing. The offer was later increased to include all 3,321 Oceans configured for North America on June 30. (Excluding Canadian-configured vehicles located in Canada.) American Lease is prohibited from reselling the vehicles for 12 months. The purchase price varies, with $3,200 for previously-titled vehicles, $16,500 for those in good working condition, and $2,500 for damaged ones.

Once the sale is finalized, Fisker will have no further responsibilities regarding the vehicles; they will be sold “as is.” Heights Capital Management, Fisker’s largest creditor, has already sanctioned the sale, awaiting court approval. Fisker’s legal team is pushing for a swift resolution, emphasizing that a delay beyond July 12 could jeopardize essential business expenses required for an orderly liquidation.

## FAQ

1. **What is the current status of Fisker Automotive?**
– Fisker filed for bankruptcy last month and is now looking to sell its remaining inventory of Oceans.

2. **Why is American Lease interested in acquiring Fisker’s EVs?**
– American Lease intends to use the EVs for ridesharing purposes as part of their goal to achieve zero emissions by 2030.

3. **What are the terms of the proposed sale to American Lease?**
– American Lease has agreed to purchase all 3,321 Oceans for $46.25 million, with varying prices based on the condition of the vehicles.

## Conclusion

The potential sale of Fisker’s remaining inventory to American Lease could mark a significant development in the automaker’s bankruptcy proceedings. While challenges exist in obtaining approval for the sale, the outcome could have implications for both Fisker and its creditors. The interest from American Lease in utilizing the EVs for ridesharing showcases the evolving landscape of sustainable transportation solutions. Fisker’s priority in ensuring a swift resolution to the sale highlights the urgency of the situation and the need for a timely decision from the courts.

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