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Discussion Starter · #1 ·
http://www.chicagotribune.com/busin...y-expert-report-says-20130328,0,1744497.story

Reuters 2:52 p.m. CDT, March 28, 2013

Fisker Automotive, the green-car company that has not built a car since July, has hired law firm Kirkland & Ellis to advise it on a possible bankruptcy filing, a person close to the matter said Thursday.

Kirkland's Anup Sathy, a bankruptcy lawyer who handled the Chapter 11 filings of General Growth Properties and Innkeepers USA Trust, is advising the U.S. automaker, the source said, declining to be named because the matter is not public.

Neither Kirkland & Ellis nor Sathy were immediately available to comment.

Fisker, which furloughed its more than 200 U.S. workers this week to conserve cash, has been exploring bankruptcy as an option while it continues to look for a strategic partner, two other sources briefed on the matter said late on Wednesday.

A Fisker spokesman declined to comment on Thursday.

Next month, Fisker must make a payment on a Department of Energy loan extended in 2009 as part of an Obama administration program to spur advanced vehicle development. Fisker declined to divulge the amount of the loan payment, which is due April 22.

Fisker had drawn down $193 million of its $529 million federal loan before U.S. officials froze the credit line, citing delays in the launch of Fisker's flagship car, the Karma plug-in hybrid. The remaining money was earmarked to develop Fisker's second model, the Atlantic plug-in hybrid.

Fisker had been in talks with Chinese automakers Dongfeng Motor Group and Zhejiang Geely Holding Group to gauge their interest in acquiring a majority stake in Fisker. The talks were unsuccessful.

Fisker's chief executive, Tony Posawatz, visited China this week to try to rekindle those deals, sources previously said.

The Wall Street Journal first reported the hiring of Kirkland & Ellis.
Copyright © 2013, Reuters
 

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It could be a good outcome for Fisker to be re-organized. it will depend on the type of bankruptcy. Certainly, i'd like to see fisker either restructure debt and get to the next phase of business, with a launch of the atlantic... or be bought by a company that wants to take over all that fisker has accomplished at a significant discount to the billion+ spent, and carry the torch forward. Such a buyer would want to honor the warranties, and engage the owner base (and furloughed employees) to help the world hear what a great vehicle they've created, and to communicate confidence that anyone buying in the future is working with a reputable and stable new owner.

Wishful thinking? Maybe, but plausible. Retail restructuring of the likes of Macy's, etc have roughly followed this pattern.
 

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Discussion Starter · #4 ·
Does anyone know what will happen to our warranty if Fisker goes bankrupt?
Whether or not we will have a warranty during/after bankruptcy in not know. This could go either way depending on many factors.

In my opinion our best shot is a financially healthy company buys Fisker out of bankruptcy so they don't have to carry the existing debt, and the new owners decide to honor existing warranties.
 
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