Fisker could be preparing for bankruptcy – reports

Fisker could be preparing for possible bankruptcy filing after it apparently hired restructuring advisors, media reports have said. 

The Wall Street Journal reported the American EV start-up has hired financial advisor FTI Consulting and Davis Polk, a law firm, to assist with a potential bankruptcy filing. 

Last month, Fisker reported that it could run of cash by the end of the year without further investment, and said it was eyeing up the possibility of cutting its workforce by 15% as it battled heavy losses.

Fisker responded to the reports, saying: “As a matter of company policy, Fisker does not comment on market rumors and speculation. However, Fisker often works with outside advisors to help manage its business and assist in developing and executing strategies. 

"Fisker is focused on raising additional capital and engaging in a strategic partnership with a large automaker. The company is also continuing to pursue its shift to a dealer partnership model in both North America and Europe. The leadership team is laser-focused on these efforts.” 

Shares soared 31% on the New York Stock Exchange following Fisker's statement.

Earlier this month, news emerged that the company was thrashing out a financial rescue package with Nissan to the tune of £315 million. If it were to go ahead, the Japanese carmaker would take a chunky slice of Fisker and have access to its Kayak electric pick-up.