Fisker hires law firm to prepare for possible bankruptcy -source

NEW YORK/DETROIT Thu Mar 28, 2013 3:36pm EDT

The Fisker automotive electric Atlantic sedan logo is seen during its unveiling ahead of the 2012 International Auto Show in New York April 3, 2012. REUTERS/Allison Joyce

The Fisker automotive electric Atlantic sedan logo is seen during its unveiling ahead of the 2012 International Auto Show in New York April 3, 2012.

Credit: Reuters/Allison Joyce

NEW YORK/DETROIT (Reuters) - Fisker Automotive, the green-car company that has not built a car since July, has hired law firm Kirkland & Ellis to advise it on a possible bankruptcy filing, a person close to the matter said on Thursday.

Kirkland's Anup Sathy, a bankruptcy lawyer who handled the Chapter 11 filings of General Growth Properties and Innkeepers USA Trust, is advising the U.S. automaker, the source said, declining to be named because the matter is not public.

Neither Kirkland & Ellis nor Sathy were immediately available to comment.

Fisker, which furloughed its more than 200 U.S. workers this week to conserve cash, has been exploring bankruptcy as an option while it continues to look for a strategic partner, two other sources briefed on the matter said late on Wednesday.

A Fisker spokesman declined to comment on Thursday.

Next month, Fisker must make a payment on a U.S. Department of Energy loan that was extended to the company in 2009 as part of an Obama administration program to spur advanced vehicle development. Fisker declined to divulge the amount of the loan payment, which is due April 22.

Fisker had drawn down $193 million of its $529 million federal loan before U.S. officials froze the credit line, citing delays in the launch of Fisker's flagship car, the Karma plug-in hybrid. The remaining money was earmarked to develop Fisker's second model, the Atlantic plug-in hybrid.

Fisker had been in talks with Chinese automakers Dongfeng Motor Group (0489.HK) and Zhejiang Geely Holding Group GEELY.UL to gauge their interest in acquiring a majority stake in Fisker. The talks were unsuccessful.

Fisker's chief executive, Tony Posawatz, visited China this week to try to rekindle those deals, sources previously said.

The Wall Street Journal first reported the hiring of Kirkland & Ellis.

(Reporting by Nick Brown in New York and Deepa Seetharaman in Detroit; additional reporting by Paul Lienert in New York; Editing by Leslie Adler)

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Comments (3)
aostler wrote:
Articles such as this one illustrate the importance of a law firm in society and the role that a firm might play. All a law firm is, though, is a group of lawyers who collaborate with each other on cases and work together to fix problems. The job market for lawyers today is not what it was about 5 years ago. However, according to the US Bureau of Labor Statistics, there is still growth happening in the legal industry, and this growth is projected to continue. According to the bureau’s statistics, the lawyer profession is expected to grow at a rate of 10 percent, which is about the same as other industries on average. Law firms, companies, organizations, and people still need lawyers, and will continue to need them, even if some industries are currently no doing as well as they were in years past. If you wish to pursue the career of a lawyer, select a good law school, graduate, pass the bar, and go into the specialty of your choice. Just make sure there is a need for whatever specialty of law you’re going into. This will help ensure you will find work and be able to have a successful career in law.

Mar 29, 2013 1:06pm EDT  --  Report as abuse
SavageNation wrote:
Only 1/5th Billion wasted on another Green Sham. Taxpayers got off easy this time

Apr 01, 2013 9:20pm EDT  --  Report as abuse
JackP32 wrote:
…………………. and the beat rolls on with no end in sight.

Apr 02, 2013 3:18pm EDT  --  Report as abuse
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