WionDrive News Desk 
American electric vehicle maker Fisker’s talks with a large automaker for a potential deal have collapsed, following which the New York Stock Exchange is planning to delist the cash-strapped electric-vehicle startup’s shares due to “abnormally low” price levels. Trading in the stock has also been suspended by the NYSE. Fisker’s shares were trading at USD 0.09 before the halt and closed at USD 0.13 on Friday.
After the end of talks with the unnamed automaker, Fisker has been left to search for strategic options including in- or out-of-court restructurings and capital markets transactions. In the event of a stock delisting, the company will be required to offer to repurchase its unsecured 2.50% convertible notes due 2026 and it will trigger an event of default under its senior secured convertible notes due 2025.
The cash-strapped startup said in a statement, “We do not currently have sufficient cash reserves or financing sources sufficient to satisfy all amounts due under the 2026 Notes or the 2025 Notes, and as a result, such events could have a material adverse effect on our business, results of operations and financial condition.”
The news comes a week after the company paused electric-vehicle production, fanning growing uncertainty around its future. “I can’t put it if it is next week or next year, but it is inevitable,” Thomas Hayes, chairman at hedge fund Great Hill Capital, said on the growing chances of Fisker likely to file for bankruptcy protection.
Fisker could become the second failed auto startup from Henrik Fisker upon a potential bankruptcy. He started his career as an automotive designer and was also a Tesla consultant. His previous attempt, Fisker Automotive, fell victim to the 2008 financial crisis and filed for bankruptcy in 2013 despite fetching USD 192 million in loans from the Department of Energy.
The latest venture of Fisker was founded in 2016 and went public through a merger with a blank-check firm for a valuation of USD 2.9 billion. However, a slew of supply chain issues, production delays and fundraising hurdles sent its market valuation crashing to less than USD 100 million.
