Fisker loses potential Nissan deal, putting hedge funds at risk

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Talks between Fisker and a large automaker – called Nissan – over a potential investment and collaboration have been ended, a development that jeopardizes a separate near-term rescue financing effort.

Fisker revealed in a regulatory filing Monday morning that the automaker ended talks on March 22. He didn’t say why. But the company had to continue negotiations as part of one of the closing conditions for a potential $150 million convertible note announced last week. The fixer said in the filing that it would ask the unnamed investor to waive the closing condition. The startup’s stock fell 28% after the stock market opened, forcing trading to be halted.

It’s the latest in a series of ominous signs for the troubled EV startup. As TechCrunch reported in January, Fisker has struggled to sell its Ocean SUV early on, falling short of its internal sales targets, forcing it to move away from a direct sales model. According to internal documents, some of the cars delivered have been affected by a number of quality problems – which Fisker has sometimes struggled to resolve.

In February, the fixer laid off 15% of its staff (about 200 people) and last week reported having only $121 million in the bank. The company has halted production and warned investors it may not survive a year without a new infusion of cash. Fisker had held talks with other automakers, including Mazda, but recently only Nissan remained in talks.

Fisker said Monday morning that it is evaluating other “strategic options” for a potential tie-up with Nissan, including “in- or out-of-court restructuring, capital markets transactions (subject to market conditions), buybacks, redemptions, exchanges.” or other refinancing”. its existing debt, potential issuance of equity securities, potential sale of assets and businesses and/or other strategic transactions and/or other measures.”



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