Fisker (NYSE:FSR), an electric vehicle startup facing financial difficulties, has reportedly sought the assistance of restructuring advisers to explore the possibility of filing for bankruptcy, according to the Wall Street Journal. After the news emerged, Fisker’s stock plummeted more than 43% intra-day today.
The company, which is in danger of running out of cash this year, has appointed FTI Consulting for financial consultancy and the law firm Davis Polk for legal advice regarding the potential bankruptcy proceedings.
Fisker’s financial struggles were highlighted last month when it reported $273 million in sales for the prior year, while grappling with over $1 billion in debt.
Additionally, Fisker expressed significant concerns about its future, revealing doubts about its capacity to continue as a going concern. The company is currently in the process of seeking additional capital from investors and searching for a new manufacturing partner in the U.S.