EV startup Fisker’s U.S. units file for bankruptcy

(Reuters) – Electric vehicle startup Fisker, which sought Chapter 11 protection earlier this week, said its U.S. units had also filed for bankruptcy in a court in Delaware on Wednesday.

Fisker Inc (OTC:) and its other U.S. subsidiaries have entered into Chapter 11, the firm said, adding that discussions about the sale of assets remain ongoing.

As per the court filing, Fisker Inc listed assets estimated to be worth between $500 million and $1 billion, while its liabilities were projected at between $1 billion and $10 billion.

Fisker Group Inc, the company’s operating unit, filed for Chapter 11 protection on Monday and said it would sell its assets and restructure its debt.

The firm, which went public in 2020, was founded by automotive designer Henrik Fisker.

In February it had flagged doubts about its ability to remain in business and later failed to secure an investment from a large automaker, forcing it to rein in operations.