EV startup Fisker is preparing for a possible bankruptcy filing.
The Wall Street Journal reported the automaker has hired restructuring advisers to help with the potential filing.
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It came after Fisker warned it was at risk of running out of money this year, following the posting of its preliminary Q4 and full year 2023 results.
It booked US$273m in sales last year but was over $1bn in debt.
In its results, it addressed “substantial doubt about… ability to continue as a going concern”.
It added: “[We expect] capital expenditures and working capital requirements to decrease during 2024 and beyond as [we] enter the second year of [production].
“Furthermore, to the extent [our] current resources are insufficient to satisfy its requirements over the next 12 months, the company will need to seek additional equity or debt financing, and there can be no assurance [we] will be successful in these efforts.”
Financial adviser FTI Consulting and law firm Davis Polk have been hired, according to the WSJ.
