Fisker’s Austria unit begins insolvency proceedings

(Reuters) – Fisker’s Austrian unit filed for bankruptcy protection on Tuesday as the cash-strapped EV startup looks for strategic options after talks with a major automaker for a potential investment collapsed.

The unit, Fisker GmbH, said other divisions are not included in the restructuring process and will continue to operate normally.

Fisker has been under pressure since it warned of going concern in February. It faces stiff competition and subdued customer spending in the wake of a tough economy.

“By filing to open a restructuring proceeding via self-administration, Fisker Austria gains breathing room to protect its business while it conducts a value-maximizing strategic transaction or other sale of assets,” a Fisker spokesperson said in an email statement.

“Fisker continues to diligently explore all available options to maximize the value of its global business.”

The EV marker said on April 23 that it may have to file for bankruptcy protection within 30 days if it does not get adequate relief from its creditors and enough liquidity to meet its current debt obligations.

Fisker said the unit will continue to pay its employees and sell and service vehicles.

Reporting by Harshita Mary Varghese; Editing by Ravi Prakash Kumar