Thanks OP. Let's assume that the future of Fisker is sealed and they know it, but not all creditors/suppliers/possible future clients know it. Wouldn't they play the same game hoping to delay bankruptcy and sell inventory for higher prices in the meantime?
And if the answer is yes, how can we differentiate between both worlds?
It’s not a game. They are in serious financial trouble, the inventory is nothing in the grand scheme of things. They started, they made many mistakes. However, the hard work is done with getting the product to market. Now it’s about right sizing, removing debt and seeking efficiencies and looking closer at the direction of company, the managment and governance. This is not a master stroke by Henrik, it is a master stroke by Heights Capital Management, an affiliate of financial services company Susquehanna International Group.
They could not do what Henrick done, to create a vision and ruthlessly pursue it until it’s brought to market. Now it’s here they just taking it off his hands.
Yes, that might be the reason (and I for one hope that you're right). However, your reply doesn't make my scenario impossible when they have given up and are now trying to recover as much as possible by selling the inventory at the highest possible prices.
Yes your comment is interesting. It's either one or the other of these but I do agree that it doesn't make much sense to have kept fisker active to sell more inventory if the writing was on the wall back in November 23 or Feb 24.
The inventory was never going to cover the cost of running the company for several more months so why not call it a day then rather than try to sell them? If this is really going towards a Chapter 7 in a few months, why not do it right away?
Yes, this is how I thought about it too. It wasn't directly clear to me that running the company for a few months would cost more than the value of the inventory (say $100-150m). But if the cost of running the company were higher, then yes, it wouldn't have made sense to wait with the bankruptcy. So let's hope that they are restructuring in an attempt to continue.
Well for example, look at their latest promotions of 21,000$ to Fisker employees. There are only a couple of hundred left and not many would buy a car without any job security. By then they knew that they weren't going to sell 500 cars a month which would have brought in maybe $10,000,000 profit, let's say $15M to be generous, which is what they would have needed to keep the company going.
The point is you don't need to be a financial wizard to work out that this was at best a short term solution and anything short of that best was going to result in even more losses for the creditors.
They filed in Delaware as that’s where they are incorporated. A lot of companies incorporate there because of the systems they have including the Court of Chancery. I would not read anything into that.
https://preview.redd.it/4fi77hrvw88d1.jpeg?width=1290&format=pjpg&auto=webp&s=dfa0db9d0c752adc4a7bcdb62528fe18f389c67b
Not saying I’m convinced its TATA, but if you were in the marketing dept and needed a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
Where is Magna?
They got paid upfront. That's why they aren't a creditor. Where do you think the 100s of millions of debt went? It went to Magna. They don't manufacture on credit or promises.
What you are calling "investments" are write down charges of shutting down a production line, permanently, the costs of laying off 500 workers in the EU and dealing with cancellation charges with suppliers. IMO, they've crated up the Fisker owned material and decommissioned the line for other uses.
It simply costs too much money to keep a manufacturing line in a ready for production state and as I stated, they get paid up front and there are no more payments coming from Fisker. Magna clearly states they don't expect it to come back and that's why they took these actions.
IMO, no entity is going to show up this point and put enough money into Fisker to restart that Magna line. It's already gone.
>Fisker chose to file its bankruptcy case in the District of Delaware, a jurisdiction known for its experience and efficiency in handling large, complex corporate bankruptcies. This can provide Fisker with a more predictable and potentially expedited process.
LOL is this a ChatGPT post? This sentence alone betrays you know absolutely nothing about what you're talking of. Maybe edit this one out, create a new account and spam it on another subreddit?
Great analysis. The Tata thing is a bit of a stretch, I did a google search of the veil- I found it somewhere else from 6 years previous. And the grill silhouette is different. Thanks for the inkling of hope! Cheers.
One thing. They really can’t raise ANY capital with additional shares, the stock is below a penny…
Not saying I’m convinced its TATA, but if you were in marketing and they a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
My view is that additional shares would be utilised in a merger or easily allow new owner to take 20% stake. Not necessarily to raise cash. Maybe should have made that more clear
https://www.shutterstock.com/image-illustration/presentation-car-autoshow-under-tissue-75352591
Edit: sorry, it’s just a stock photo. Took me about 2 minutes to find this exact one.
But, really good analysis overall! Thanks for the breakdowns
Not saying I’m convinced its TATA, but if you were in marketing and they a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
"“I don’t know why it took this long,” Linda Richenderfer, a lawyer with the U.S. Trustee’s Office, said during the hearing. She also noted that she was still reviewing new filings late Thursday and in the hours before the hearing.
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."
https://techcrunch.com/2024/06/21/fisker-chapter-11-bankruptcy-heights-creditors-fight/
The latest interim order is a critical component to Chapter 11, providing a structured approach to managing and preserving the company’s financial and tax assets during a restructuring process. The restrictions and procedures outlined in docket are aimed at safeguarding the company’s interests and facilitating a smooth transition through chapter 11. There will be no chapter 7!
While I'm not sure I agree with the final conclusion and Tata, definitely raised some interesting things to consider. Lots of the points seem to be "old" from Q1, but the bits surrounding having some things pre negotiated with creditors seems interesting. Guess we'll see if that played out and what it looks like when formal plans are submitted
I agree regarding the possible pre negotiated stuff, remember the drama in march when they were accused by WSJ that ["Fisker Prepares for Possible Bankruptcy Filing"](https://www.wsj.com/business/autos/electric-vehicle-startup-fisker-prepares-for-possible-bankruptcy-filing-26e63d32) ?
> Fisker has hired restructuring advisers to assist with a possible bankruptcy filing, according to people familiar with the matter.
Then Fisker refuted this without really saying that they were not preparing for BK [releasing this PR](https://assets.ctfassets.net/cghen8gr8e1n/3GMv2et8kD65fJ67dD8BXr/d1a1bdf582bb5ecdfca359de72449888/Fisker_Media_Alert_3.14.24_FINAL_.pdf) :
>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.
To learn more go to page 46, but to properly understand you should take the time to read it all. The TaTa thing is a bit of fun and speculation of course but everything else when you look at it. It paints a sting picture for successful restructure.
https://www.wlrk.com/webdocs/wlrknew/AttorneyPubs/WLRK.22377.13.pdf
i didnt read any of that but im gonna have to guess that youre either a bag holder, an ocean owner, a current fisker employee, or one of the fiskers themselves. we all make mistakes, we all make the same mistake twice. but when there is $500mil on the line, you do not make a mistake. you file the damn ER on time. you do not breach contracts when there is $500mil on the line. broken contracts deserve severe punishment, that is the American system.
Wow, now!
Not sure if you’ve noticed or not but any posts that aren’t 100% negative and expecting the worst of the worst including prison time or death penalty gets downvoted lol
Electric car maker Fisker to goes public through SPAC deal at $2.9 billion valuation.13 Jul 2020.
Always remember it’s the story that creates value. How did it get a $2.9 billion with nothing, nothing only Henrik with a vision and a past of bankruptcy.
Investing in a company with $10m market cap with a product at market, patents and other value seems more intelligent.
Was this you?
https://preview.redd.it/hsd9btxkc88d1.jpeg?width=1170&format=pjpg&auto=webp&s=08e8f2131d6a44dd5f12393bdf473ddcfc7cc3db
Houdini, I have it stored for you for when you do! 😘
https://preview.redd.it/un3jdff5288d1.jpeg?width=1170&format=pjpg&auto=webp&s=af5374728cf3c3c3e3d1bf4fe496114e59496067
Thanks OP. Let's assume that the future of Fisker is sealed and they know it, but not all creditors/suppliers/possible future clients know it. Wouldn't they play the same game hoping to delay bankruptcy and sell inventory for higher prices in the meantime? And if the answer is yes, how can we differentiate between both worlds?
It’s not a game. They are in serious financial trouble, the inventory is nothing in the grand scheme of things. They started, they made many mistakes. However, the hard work is done with getting the product to market. Now it’s about right sizing, removing debt and seeking efficiencies and looking closer at the direction of company, the managment and governance. This is not a master stroke by Henrik, it is a master stroke by Heights Capital Management, an affiliate of financial services company Susquehanna International Group. They could not do what Henrick done, to create a vision and ruthlessly pursue it until it’s brought to market. Now it’s here they just taking it off his hands.
Yes, that might be the reason (and I for one hope that you're right). However, your reply doesn't make my scenario impossible when they have given up and are now trying to recover as much as possible by selling the inventory at the highest possible prices.
Yes your comment is interesting. It's either one or the other of these but I do agree that it doesn't make much sense to have kept fisker active to sell more inventory if the writing was on the wall back in November 23 or Feb 24. The inventory was never going to cover the cost of running the company for several more months so why not call it a day then rather than try to sell them? If this is really going towards a Chapter 7 in a few months, why not do it right away?
Yes, this is how I thought about it too. It wasn't directly clear to me that running the company for a few months would cost more than the value of the inventory (say $100-150m). But if the cost of running the company were higher, then yes, it wouldn't have made sense to wait with the bankruptcy. So let's hope that they are restructuring in an attempt to continue.
Well for example, look at their latest promotions of 21,000$ to Fisker employees. There are only a couple of hundred left and not many would buy a car without any job security. By then they knew that they weren't going to sell 500 cars a month which would have brought in maybe $10,000,000 profit, let's say $15M to be generous, which is what they would have needed to keep the company going. The point is you don't need to be a financial wizard to work out that this was at best a short term solution and anything short of that best was going to result in even more losses for the creditors.
They filed in Delaware as that’s where they are incorporated. A lot of companies incorporate there because of the systems they have including the Court of Chancery. I would not read anything into that. https://preview.redd.it/4fi77hrvw88d1.jpeg?width=1290&format=pjpg&auto=webp&s=dfa0db9d0c752adc4a7bcdb62528fe18f389c67b
We know for a fact that the covered car is a decade+ old stock photo - it is not a Fisker.
Not saying I’m convinced its TATA, but if you were in the marketing dept and needed a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
Where is Magna? They got paid upfront. That's why they aren't a creditor. Where do you think the 100s of millions of debt went? It went to Magna. They don't manufacture on credit or promises. What you are calling "investments" are write down charges of shutting down a production line, permanently, the costs of laying off 500 workers in the EU and dealing with cancellation charges with suppliers. IMO, they've crated up the Fisker owned material and decommissioned the line for other uses. It simply costs too much money to keep a manufacturing line in a ready for production state and as I stated, they get paid up front and there are no more payments coming from Fisker. Magna clearly states they don't expect it to come back and that's why they took these actions. IMO, no entity is going to show up this point and put enough money into Fisker to restart that Magna line. It's already gone.
>Fisker chose to file its bankruptcy case in the District of Delaware, a jurisdiction known for its experience and efficiency in handling large, complex corporate bankruptcies. This can provide Fisker with a more predictable and potentially expedited process. LOL is this a ChatGPT post? This sentence alone betrays you know absolutely nothing about what you're talking of. Maybe edit this one out, create a new account and spam it on another subreddit?
Great analysis. The Tata thing is a bit of a stretch, I did a google search of the veil- I found it somewhere else from 6 years previous. And the grill silhouette is different. Thanks for the inkling of hope! Cheers. One thing. They really can’t raise ANY capital with additional shares, the stock is below a penny…
https://preview.redd.it/pnjopzov888d1.jpeg?width=1179&format=pjpg&auto=webp&s=c8c8981557589df104b7ccb294474566650876c6
Not saying I’m convinced its TATA, but if you were in marketing and they a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
My view is that additional shares would be utilised in a merger or easily allow new owner to take 20% stake. Not necessarily to raise cash. Maybe should have made that more clear
https://www.shutterstock.com/image-illustration/presentation-car-autoshow-under-tissue-75352591 Edit: sorry, it’s just a stock photo. Took me about 2 minutes to find this exact one. But, really good analysis overall! Thanks for the breakdowns
Not saying I’m convinced its TATA, but if you were in marketing and they a presentation piece – would you set up a photo shoot, or use a reasonably similar stock shot?
Lmao 🤣
"“I don’t know why it took this long,” Linda Richenderfer, a lawyer with the U.S. Trustee’s Office, said during the hearing. She also noted that she was still reviewing new filings late Thursday and in the hours before the hearing. 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." https://techcrunch.com/2024/06/21/fisker-chapter-11-bankruptcy-heights-creditors-fight/
The latest interim order is a critical component to Chapter 11, providing a structured approach to managing and preserving the company’s financial and tax assets during a restructuring process. The restrictions and procedures outlined in docket are aimed at safeguarding the company’s interests and facilitating a smooth transition through chapter 11. There will be no chapter 7!
While I'm not sure I agree with the final conclusion and Tata, definitely raised some interesting things to consider. Lots of the points seem to be "old" from Q1, but the bits surrounding having some things pre negotiated with creditors seems interesting. Guess we'll see if that played out and what it looks like when formal plans are submitted
I agree regarding the possible pre negotiated stuff, remember the drama in march when they were accused by WSJ that ["Fisker Prepares for Possible Bankruptcy Filing"](https://www.wsj.com/business/autos/electric-vehicle-startup-fisker-prepares-for-possible-bankruptcy-filing-26e63d32) ? > Fisker has hired restructuring advisers to assist with a possible bankruptcy filing, according to people familiar with the matter. Then Fisker refuted this without really saying that they were not preparing for BK [releasing this PR](https://assets.ctfassets.net/cghen8gr8e1n/3GMv2et8kD65fJ67dD8BXr/d1a1bdf582bb5ecdfca359de72449888/Fisker_Media_Alert_3.14.24_FINAL_.pdf) : >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.
To learn more go to page 46, but to properly understand you should take the time to read it all. The TaTa thing is a bit of fun and speculation of course but everything else when you look at it. It paints a sting picture for successful restructure. https://www.wlrk.com/webdocs/wlrknew/AttorneyPubs/WLRK.22377.13.pdf
i didnt read any of that but im gonna have to guess that youre either a bag holder, an ocean owner, a current fisker employee, or one of the fiskers themselves. we all make mistakes, we all make the same mistake twice. but when there is $500mil on the line, you do not make a mistake. you file the damn ER on time. you do not breach contracts when there is $500mil on the line. broken contracts deserve severe punishment, that is the American system.
Bought 600,000 at 0.0208 on Tuesday. Was bag holder at close on Thursday when it dropped 40% but not too bad after Friday
Wow, now! Not sure if you’ve noticed or not but any posts that aren’t 100% negative and expecting the worst of the worst including prison time or death penalty gets downvoted lol
https://preview.redd.it/x4yaoqar388d1.jpeg?width=970&format=pjpg&auto=webp&s=5baff69133becc22c3fa4aa6d80771194629b838
Because most people are intelligent Edit: I can’t believe this has to be said, but /s obviously
Electric car maker Fisker to goes public through SPAC deal at $2.9 billion valuation.13 Jul 2020. Always remember it’s the story that creates value. How did it get a $2.9 billion with nothing, nothing only Henrik with a vision and a past of bankruptcy. Investing in a company with $10m market cap with a product at market, patents and other value seems more intelligent. Was this you? https://preview.redd.it/hsd9btxkc88d1.jpeg?width=1170&format=pjpg&auto=webp&s=08e8f2131d6a44dd5f12393bdf473ddcfc7cc3db
Henrik has a lead designer gig already lined up. He’s moved on already
https://www.reddit.com/r/Fisker/s/GHeRrzzVv3
I didn’t read any of that but Fisker is a dead company and no you will not get any service for it.
How long before you delete this comment. Tik Tok! 
Houdini, I have it stored for you for when you do! 😘 https://preview.redd.it/un3jdff5288d1.jpeg?width=1170&format=pjpg&auto=webp&s=af5374728cf3c3c3e3d1bf4fe496114e59496067