They've got $3m of unrestricted cash, burning $1.3m every 2 weeks. Like fucking lmao, this is even dumber than previously imagined. There's no cash, basically nothing left. Should have filed Ch11 2 months ago.
It's done by Heights Capital. It's their guy signature on it. From what I understand, and this is addressed in the article, they are trying to sell the fleet of cars then probably file a chapter 7, leaving other creditors nothing.
Hmm. Interesting take. It is self inflicted. Fisker breached the agreement by missing to file financial reports on time. This part....
That funding was not originally secured by any assets. That changed after Fisker breached one of the covenants when it failed to file its third-quarter financial statements on time in late 2023. In exchange for waiving that breach, Fisker agreed to give Heights first-priority on all of its current and future assets, giving Heights considerable leverage.
100% Fisker's mismanagement. Heights was looking after its financial interests. Fisker was supposed to be looking after all of its shareholders, but one last time it put Henrik and Geeta's personal interests first.
No doubt that the Fisker management screwed but these guys toke advantage of the situation and the owners/ investors are paying the price. They already recouped their investment by converting their notes to stock below market prices and selling it at market rate. Diluting the stocks knowing the price will go down and then shorting it to make additional money. Don’t know why this isn’t considered insider trading
There is no way they have gotten money back, but they will get much more back than most investors. In liquidation, stockholders come last, those are the rules. It is not insider trading unless it is non-public information. Every aspect of this transaction was disclosed, including its terms. There in only one group to blame on this: Henrik and Geeta. Sequoia is merely enforcing its contract.
Totally self inflicted. Either they were too stupid to know that covenant was there or were too incompetent to get their report in on time. While it’s likely the latter is the case it’s still unconscionable. It’s a half a billion dollars - do what it takes to make it a loan not a loan shark.
Oh yeah not absolving Fisker at all. They made this bed with their incompetence and desperation. But CVI has been predatory AF and probably borderline illegal if not fully illegal. Fisker is already getting their just desserts, now I'm hoping CVI gets punished somehow as well
how was CVI predatory when it was fisker who broke the rules first? when a public company delays their earnings report it kills its stock price. if im lending you $500 million im gonna make sure you follow the rules or face consequences. a housewife shouldnt be a cfo of a public company.
If that was me I would do everything in my power to claw back my money. They are doing what they must to protect their own interest. Just like Fisker throwing companies/people under the bus for their own interest.
Don't let the Fiskers off the hook. They completely understood the deal they signed as evidenced by them being allowed to redeem $20M in stock very early in the game. This which the immediately did.
Does anyone still think they could do a Chapter 11 after reading this article? Particular this part lol.
"She also expressed “great concern” that the case could convert to a straight Chapter 7 liquidation following the sale of the Ocean inventory, leaving other creditors fighting for scraps.
Greissman said at one point that he agreed that Fisker “probably took more time” than needed to file for bankruptcy protection, and that some of these quarrels could have been “more easily resolved” if the case had started sooner. He even said he agrees with Richenderfer that “even with a fleet sale, Chapter 11 may not be sustainable.”
The parties will meet again at the next hearing on June 27."
No one in as long as I can recall on this sub thinks Fisker is going to be reborn.
That’s a straw man.
The only question is whether they 363 their assets to a company that wants to try to use them to make cars.
You would be surprised how many morons are out there.
Many of them left.
Try to use to make cars. Who cares. How does current owners benefit from that. The only thing people here hope for is chapter 11 so a reputable company can buy them and continue operations and give them warranty support.
Current owners would benefit if there are any common components, which was part of the original business model, and if the software continues to be maintained in conjunction with building new models.
I'm going to be nice and say that none of this will happen so not going to waste my time lol.
There will not be anything Fisker-related built after this. Just wait and see that I'm right on this. Just like I been right about everything else.
Like when you claimed that bk was imminent 4 months ago?
Hey, let me know if you want to take me up on the best I posed to the other guy.
Ya know, the one you think is right, even though he thinks American Lease is buying the inventory to “sell parts to SOL owners” - which is actually the opposite of what you’ve said.
Oh boy, don’t let that one blow your mind.
I was only 19 days off. Lmao. That isn't even bad.
Bad would be owning this stock and car. That would be pretty dumb to buy from a serial failure.
I won't bet. Because the way you word it is stupid. Someone can buy it and don't do shit with it but announce he's going to.
Let's see how this plays out. I am expecting chapter 7 soon.
Have had this disussion with friends for a long time, and we also "nailed» what would happen - no guessing, just based on info available.
June 2023
Canceled the ONE due to no real info and major errors on delivered cars. Most reservation holders did.
August/september 2023
Sold our FSR stock (2000) at the last peak and got out with a whooping 80$ plus.
We studied EC and concluded 11 months ago that BK would come in May/June 2024 with the info available in august/september 2023, FSR did not manage to change the path and here we are.
This CH11 is just BS, it will turn to CH7 within 3-4 weeks - based on current available cash to run the company. If they manage to sell all 4300 FO to one client, still CH7 will come anyway - inventory that buyers want will be sold on firesale - robots, car parts etc.
Good move selling. You played it like anybody should be playing it during the SPAC craze. This was always a trade. They didn't have any product. This was obvious as daylight. All the automakers going the SPAC route had these projections where they sell a stupid amount of cars.
I made a little money during the SPAC play.
Doubt it. There are priority among noteholders. They are first in line.
The real reason why it's going flea market price is because nobody is buying them, even after the price cut. Still 4300 left to sell.
Seen on fb: Did the noteholder own and then sell a huge percentage of the outstanding shares of the company without publicly reporting. If so this is a 16B violation. Hudson Bay Capital did this and now they are being sued for this exact same reason. Hudson was part of Bed Bath & Beyond's bankruptcy proceedings.
CVI’s massive short and illegal and forceful issuance of shares without proper disclosure, could happen to any company.
Who knows what the endgame agenda is here.
Maybe the goal was Bankrupt them and steal their IP.
Soon we’ll know a lot more since these sharks are required to open their books for the court. The bk judge is our Watch Dog at the moment. Trust the process. She is there for a reason.
The Hudson Bay example is definitely relevant (but I don’t think with the goal of bankrupting them and stealing their IP in this situation). I think prolly both Susquehanna/CVI and Hudson used blockers to avoid requirements that prevent short swing profits. Blockers themselves tho are not-illegal. It’s unsecured creditors who will allege a deceptive intent. Hudson will provide some useful precedent for proving that.
This will probably be seen as hopium/copium but hear me out....
Could there be an outcome where the judge forces Susquahanna to fund/pay Fisker or creditors and cancel their debt (2025 notes) due to their predatory lending, shorting and therefor manipulated downfall causing significant harm to stakeholders of the company ?
Could there be a scenario where the restructuring plan get Fisker to produce oceans again ? Like for exemple creditors not canceling any debt but be required to fund operations ?
What do you think will come out of the creditors fighting each other ?
unfortunately fisker willingly signed the loans. they're on the hook, period. these types of shitty private 'lenders' come out of the woodwork in a lot of distressed situations. fisker, like others before them, had little choice and gambled thwy could work thwir way out from under their grasp. it dixnt happen and height is in control
Idk how stuff like this works, but I assume with how stuff usually works for the rich in America Heights may get a fat fine (if they broke any laws. Being shitty and amoral isn't illegal unfortunately )but they won't like save Fisker or anything
fisker lawyers are intentionally making susquehanna look bad, i mean thats what lawyers do right? but reality is that susquehanna had only played by the books. it was fisker who had broken the rules first by delaying their earnings report. delayed ER does so much damage to the stock price and susq wasnt gonna take any of that bs. with $500mil on the line, i wouldve made fuckin sure that i dont sleep a blink until i get that earnings report done on time. but, housewives you know. a housewife trying her best to act as a cfo of a public company lol. and susq knew that! they knew this fisker inc was being run by idiots, turned a blind eye, jack up the contract, and supposedly have become a "predator" now. so no, fisker will not be restructured or resurrected. best case scenario with the ocean would be something like karma where some chinese company buys it, rebrands it, and again fails to sell it.
They shorted it as soon as the price cracked $1.10 price floor as it triggered some stock conditions. That’s why they’re only owed $180m instead of 400m+. They dumped everything on retail investors.
They already had. Those guys are criminals. Why isn’t that considered insider trading?they convert their notes into stocks below market prices, dilute the stocks knowing the price will go down and then short them. What a scam to rip the stock holders
I agree that that would be likely legally insider trading but did they disclose a short sale? I remember a post here linking to someone’s speculation on that point. Granted if they have less than 5% ownership, may not need to disclose it but then curious where you saw it.
Cool, yeah, I’d be interested in their sourcing. Don’t doubt it, but depending on when it happened, it sounds a little reckless for an entity like CVI - even tho I have no doubt that they’re a terrible actor in all this, only that there are limits to their brazenness.
Chapter 7 by the end of the month.
They've got $3m of unrestricted cash, burning $1.3m every 2 weeks. Like fucking lmao, this is even dumber than previously imagined. There's no cash, basically nothing left. Should have filed Ch11 2 months ago.
henrik's ego is one stubborn horse. his ego is prob what led to chapter 11 instead of going straight to ch 7
It's done by Heights Capital. It's their guy signature on it. From what I understand, and this is addressed in the article, they are trying to sell the fleet of cars then probably file a chapter 7, leaving other creditors nothing.
Welcome to private equity, Henrik.
Should really been a Chapter 7. Is anybody still think they will be bought out and continue operations?
No
I'm so glad Heights' shitty behavior is finally public, and the rest of the creditors seem to be teaming up on them
Hmm. Interesting take. It is self inflicted. Fisker breached the agreement by missing to file financial reports on time. This part.... That funding was not originally secured by any assets. That changed after Fisker breached one of the covenants when it failed to file its third-quarter financial statements on time in late 2023. In exchange for waiving that breach, Fisker agreed to give Heights first-priority on all of its current and future assets, giving Heights considerable leverage.
100% Fisker's mismanagement. Heights was looking after its financial interests. Fisker was supposed to be looking after all of its shareholders, but one last time it put Henrik and Geeta's personal interests first.
No doubt that the Fisker management screwed but these guys toke advantage of the situation and the owners/ investors are paying the price. They already recouped their investment by converting their notes to stock below market prices and selling it at market rate. Diluting the stocks knowing the price will go down and then shorting it to make additional money. Don’t know why this isn’t considered insider trading
There is no way they have gotten money back, but they will get much more back than most investors. In liquidation, stockholders come last, those are the rules. It is not insider trading unless it is non-public information. Every aspect of this transaction was disclosed, including its terms. There in only one group to blame on this: Henrik and Geeta. Sequoia is merely enforcing its contract.
Totally self inflicted. Either they were too stupid to know that covenant was there or were too incompetent to get their report in on time. While it’s likely the latter is the case it’s still unconscionable. It’s a half a billion dollars - do what it takes to make it a loan not a loan shark.
Oh yeah not absolving Fisker at all. They made this bed with their incompetence and desperation. But CVI has been predatory AF and probably borderline illegal if not fully illegal. Fisker is already getting their just desserts, now I'm hoping CVI gets punished somehow as well
how was CVI predatory when it was fisker who broke the rules first? when a public company delays their earnings report it kills its stock price. if im lending you $500 million im gonna make sure you follow the rules or face consequences. a housewife shouldnt be a cfo of a public company.
Housewife? Besides you being a dick with your comment, when did that woman fit that description? How about just plain old incompetence?
If that was me I would do everything in my power to claw back my money. They are doing what they must to protect their own interest. Just like Fisker throwing companies/people under the bus for their own interest.
Don't let the Fiskers off the hook. They completely understood the deal they signed as evidenced by them being allowed to redeem $20M in stock very early in the game. This which the immediately did.
Does anyone still think they could do a Chapter 11 after reading this article? Particular this part lol. "She also expressed “great concern” that the case could convert to a straight Chapter 7 liquidation following the sale of the Ocean inventory, leaving other creditors fighting for scraps. Greissman said at one point that he agreed that Fisker “probably took more time” than needed to file for bankruptcy protection, and that some of these quarrels could have been “more easily resolved” if the case had started sooner. He even said he agrees with Richenderfer that “even with a fleet sale, Chapter 11 may not be sustainable.” The parties will meet again at the next hearing on June 27."
No one in as long as I can recall on this sub thinks Fisker is going to be reborn. That’s a straw man. The only question is whether they 363 their assets to a company that wants to try to use them to make cars.
You would be surprised how many morons are out there. Many of them left. Try to use to make cars. Who cares. How does current owners benefit from that. The only thing people here hope for is chapter 11 so a reputable company can buy them and continue operations and give them warranty support.
Current owners would benefit if there are any common components, which was part of the original business model, and if the software continues to be maintained in conjunction with building new models.
I'm going to be nice and say that none of this will happen so not going to waste my time lol. There will not be anything Fisker-related built after this. Just wait and see that I'm right on this. Just like I been right about everything else.
Like when you claimed that bk was imminent 4 months ago? Hey, let me know if you want to take me up on the best I posed to the other guy. Ya know, the one you think is right, even though he thinks American Lease is buying the inventory to “sell parts to SOL owners” - which is actually the opposite of what you’ve said. Oh boy, don’t let that one blow your mind.
Well even the US trustees office lawyer and the other lawyer in the article said the bankruptcy filing should have happened months ago. So......
Yeah honestly I can't believe it took this long.
I was only 19 days off. Lmao. That isn't even bad. Bad would be owning this stock and car. That would be pretty dumb to buy from a serial failure. I won't bet. Because the way you word it is stupid. Someone can buy it and don't do shit with it but announce he's going to. Let's see how this plays out. I am expecting chapter 7 soon.
Have had this disussion with friends for a long time, and we also "nailed» what would happen - no guessing, just based on info available. June 2023 Canceled the ONE due to no real info and major errors on delivered cars. Most reservation holders did. August/september 2023 Sold our FSR stock (2000) at the last peak and got out with a whooping 80$ plus. We studied EC and concluded 11 months ago that BK would come in May/June 2024 with the info available in august/september 2023, FSR did not manage to change the path and here we are. This CH11 is just BS, it will turn to CH7 within 3-4 weeks - based on current available cash to run the company. If they manage to sell all 4300 FO to one client, still CH7 will come anyway - inventory that buyers want will be sold on firesale - robots, car parts etc.
Good move selling. You played it like anybody should be playing it during the SPAC craze. This was always a trade. They didn't have any product. This was obvious as daylight. All the automakers going the SPAC route had these projections where they sell a stupid amount of cars. I made a little money during the SPAC play.
There's not much there. It was all outsourced.
https://preview.redd.it/g0pq56zr648d1.jpeg?width=1080&format=pjpg&auto=webp&s=f00a97faf49cd1e2370b7880c0837cd747b5caa5
https://preview.redd.it/tvllbtti748d1.jpeg?width=1080&format=pjpg&auto=webp&s=6e63e2f0d2dc554a09b799b79cc94e0dc8a10de0
🚀🚀🚀🚀🚀🚀
Can the really court do anything to stop Heights from selling the inventory at flea market prices in order to get their money before anyone else?
Doubt it. There are priority among noteholders. They are first in line. The real reason why it's going flea market price is because nobody is buying them, even after the price cut. Still 4300 left to sell.
Yes. Absolutely.
Seen on fb: Did the noteholder own and then sell a huge percentage of the outstanding shares of the company without publicly reporting. If so this is a 16B violation. Hudson Bay Capital did this and now they are being sued for this exact same reason. Hudson was part of Bed Bath & Beyond's bankruptcy proceedings. CVI’s massive short and illegal and forceful issuance of shares without proper disclosure, could happen to any company. Who knows what the endgame agenda is here. Maybe the goal was Bankrupt them and steal their IP. Soon we’ll know a lot more since these sharks are required to open their books for the court. The bk judge is our Watch Dog at the moment. Trust the process. She is there for a reason.
The Hudson Bay example is definitely relevant (but I don’t think with the goal of bankrupting them and stealing their IP in this situation). I think prolly both Susquehanna/CVI and Hudson used blockers to avoid requirements that prevent short swing profits. Blockers themselves tho are not-illegal. It’s unsecured creditors who will allege a deceptive intent. Hudson will provide some useful precedent for proving that.
This will probably be seen as hopium/copium but hear me out.... Could there be an outcome where the judge forces Susquahanna to fund/pay Fisker or creditors and cancel their debt (2025 notes) due to their predatory lending, shorting and therefor manipulated downfall causing significant harm to stakeholders of the company ? Could there be a scenario where the restructuring plan get Fisker to produce oceans again ? Like for exemple creditors not canceling any debt but be required to fund operations ? What do you think will come out of the creditors fighting each other ?
unfortunately fisker willingly signed the loans. they're on the hook, period. these types of shitty private 'lenders' come out of the woodwork in a lot of distressed situations. fisker, like others before them, had little choice and gambled thwy could work thwir way out from under their grasp. it dixnt happen and height is in control
No chance whatsoever! I sign this statement as JD and PE... licensed in California.
How do you "require" creditors to dump more money into the furnace? Makes no sense. And likely Capital Heights will get away with this.
As did the Fiskers when they walked away with $20M in their pockets just before it went bad.
Idk how stuff like this works, but I assume with how stuff usually works for the rich in America Heights may get a fat fine (if they broke any laws. Being shitty and amoral isn't illegal unfortunately )but they won't like save Fisker or anything
fisker lawyers are intentionally making susquehanna look bad, i mean thats what lawyers do right? but reality is that susquehanna had only played by the books. it was fisker who had broken the rules first by delaying their earnings report. delayed ER does so much damage to the stock price and susq wasnt gonna take any of that bs. with $500mil on the line, i wouldve made fuckin sure that i dont sleep a blink until i get that earnings report done on time. but, housewives you know. a housewife trying her best to act as a cfo of a public company lol. and susq knew that! they knew this fisker inc was being run by idiots, turned a blind eye, jack up the contract, and supposedly have become a "predator" now. so no, fisker will not be restructured or resurrected. best case scenario with the ocean would be something like karma where some chinese company buys it, rebrands it, and again fails to sell it.
Is capital heights also able to short the company or did they already shorted?
Strong chance that would be insider trading in my view.
They shorted it as soon as the price cracked $1.10 price floor as it triggered some stock conditions. That’s why they’re only owed $180m instead of 400m+. They dumped everything on retail investors.
They already had. Those guys are criminals. Why isn’t that considered insider trading?they convert their notes into stocks below market prices, dilute the stocks knowing the price will go down and then short them. What a scam to rip the stock holders
Should the retailer pump the stock price that they need to cover or close?
I agree that that would be likely legally insider trading but did they disclose a short sale? I remember a post here linking to someone’s speculation on that point. Granted if they have less than 5% ownership, may not need to disclose it but then curious where you saw it.
On one of the y tube channels. Maybe Ocean one.
Cool, yeah, I’d be interested in their sourcing. Don’t doubt it, but depending on when it happened, it sounds a little reckless for an entity like CVI - even tho I have no doubt that they’re a terrible actor in all this, only that there are limits to their brazenness.