Florida business owners may be interested to learn about the recent actions of Fisker Automotive, the previous manufacturer of the Karma, a pricey, hybrid-electric car. Even after the United States government awarded Fisker Automotive with a $529 million loan several years ago, the Karma hybrid sports car manufacturer finally filed for chapter 11 bankruptcy. Fisker Automotive had hopes of selling the sporty Karma electric sedans at the cost of $103,000 each, but the car had quality issues that hurt the company’s name and financial standing.
Investors tried in vain to salvage the company, but couldn’t. Fisker Automotive eventually sold out to Hybrid Technology LLC, an investor group. With the new purchase of the hybrid plug-in car company, Hybrid Technology LLC hopes to produce and sell the Karma hybrids once again. The company has plans to create other electric hybrid cars, as well, but faces problems from Frisker’s financial instabilities and a weakened reputation.
Of the $529 million loan to Fisker, the government lost an estimated $139 million in taxpayer dollars. Suppliers and other creditors suffered from the financial losses of the company, as well. By filing for bankruptcy and selling the company to Hybrid Technology, Fisker Automotive made the move in the best interest of the company and its stakeholders.
This world is full of change and your financial situation may sometimes come up against a roadblock. Like Fisker Automotive, your hopes and dreams don’t always become a reality. Facing the decision to file a personal or business bankruptcy is a huge one, therefore, and requires a bankruptcy lawyer to help lead you through the process.
Source: Reuters, “UPDATE 2-Fisker files Chapter 11 as investor group buys company“, Deepa Seetharaman, Timothy Gardner, November 22, 2013