Summary
- The SEC objects to Fisker’s current liquidation plan
- The SEC is investigating Fisker for possible federal securities law violations
- The SEC wants the liquidation plan to preserve records for the investigation
- Fisker has not commented on the situation
- Fisker faced challenges with its only vehicle, the Ocean crossover, and filed for bankruptcy in June 2023
Article
The Securities and Exchange Commission (SEC) has objected to EV startup Fisker’s current liquidation plan in a recent filing, citing an ongoing investigation into possible violations of federal securities laws during Fisker’s prepetition activities. The SEC is seeking to ensure that Fisker preserves its corporate records until the investigation is complete, in order to protect the agency’s regulatory powers. While Fisker officials did not provide a comment on the matter, the SEC has confirmed that it has an ongoing interest in the company’s books and records, and may require additional documents as part of its investigation.
Fisker, a California-based EV firm, filed for bankruptcy in June after facing challenges with its first vehicle, the Ocean crossover. Despite producing around 10,000 vehicles through a contract manufacturer, Fisker struggled with sales and recalls. The company reached a deal to sell its remaining inventory of approximately 3,000 vehicles to a leasing company in New York. The SEC’s investigation into Fisker’s activities has added another layer of complexity to the company’s bankruptcy proceedings, as the regulatory agency seeks to uncover any potential violations that may have occurred before the filing.
The SEC’s objection to Fisker’s liquidation plan comes as the company and its creditors finalize the details of the plan for approval in bankruptcy court. While the exact nature of the SEC’s investigation remains unclear, the agency has indicated that it has outstanding investigative subpoenas and may need to request additional documents from Fisker in the future. Fisker has not provided a public response to the SEC’s objection, and the regulatory agency has declined to comment on the specifics of the investigation.
In response to the SEC’s objection, Fisker may need to revise its liquidation plan to include language that ensures the preservation and production of corporate records related to the investigation. The SEC is seeking to protect its ability to conduct a thorough examination of Fisker’s prepetition activities and any potential violations of federal securities laws. The outcome of the SEC’s investigation could have implications for Fisker’s bankruptcy proceedings and the company’s future prospects as it works to address the challenges that led to its financial difficulties.
As Fisker navigates the complexities of its bankruptcy and the SEC’s investigation, the company’s stakeholders, including creditors, investors, and employees, are eagerly awaiting updates on the situation. The outcome of the SEC’s inquiry may impact the terms of Fisker’s liquidation plan and the resolution of its bankruptcy case. As the regulatory agency continues its examination of Fisker’s activities, the company will need to cooperate with investigators and address any potential issues that arise during the process. Ultimately, the resolution of the SEC’s investigation will play a significant role in shaping Fisker’s future path and determining its ability to move forward from its current financial challenges.
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