Troubled electric vehicle maker Fisker received a green light for its bankruptcy plan from U.S. Bankruptcy Judge Thomas Horan. This will allow the company to proceed with the sale of the remaining car fleet and have the funds to repay its creditors.
Fisker got into trouble earlier this year after encountering cash flow problems that forced it to shut down its production and significantly cut its workforce. It attempted to salvage itself by entering into a partnership with Nissan, but the talks between the two companies ended up breaking down.
Fisker eventually filed for bankruptcy in June. As part of its original plan, Fisker sold 3,000 of its Ocean SUVs to renting and leasing company American Lease for $46 million. It also intends to give up on intellectual property, which could be sold to another company looking to build its own EVs.
The approval of the bankruptcy plan means that the sale of Fisker’s remaining inventory to American Lease can move forward, albeit under modified conditions. American Lease will pay an additional $2.5 million to secure technical support for Ocean SUVs in the next five years, which will allow the cars to receive software updates and diagnostic data. The same support will be provided to other owners of Fisker’s EVs.
Despite the approval, Fisker and its founders still remain subject to a number of lawsuits while being under active investigation by the US Securities and Exchange Commission (SEC).