- Fisker missed a payment on a $3.5 million loan they received last month.
- The investor has decided to immediately redeem the loan following a missed payment.
- This default puts even more pressure on the EV startup’s already struggling finances.
Fisker continues to circle the drain and it appears their fire sale can’t reverse the tide. That’s becoming clear today as the company has defaulted on a $3,456,000 loan.
In a Form 8-K filing with the U.S. Securities and Exchange Commission, Fisker revealed they missed payments to CVI Investments. While this probably shouldn’t be too surprising, it appears the company defaulted almost immediately.
More: Fisker Pours More Fuel On The Ocean Fire Sale
The deal was made on May 10 and the filing says the company failed to “make the repayment required to be made for the week ended May 10.” That’s not good and CVI Investments has decided to exercise their rights to “immediately redeem 100% of the outstanding” balance as well as “any applicable interest, late charges, redemption premium, and other amounts due.”
This will undoubtedly put even more pressure on Fisker and could potentially be the straw that breaks the camel’s back. That remains to be seen, but the automaker originally said they would use the funds to finance expenses consistent with a budget approved by the investor. At the time, the company also mentioned there was a chance the amount could be increased to $7.5 million.
That possibility is now all but dead as the investor doesn’t appear to want anything to do with Fisker anymore. Regardless, the loan was supposed to be due on June 24 and had a “rate per annum equal to the three-month secured overnight financing rate plus 12%.”
The news comes at a bad time for Fisker as inventory levels continue to shrink. Last month, the automaker announced the Ocean Sport was sold out in the United States, leaving them with just the Extreme and Ultra variants. Those models now start at $37,499 and $34,999 respectively, following massive price cuts in March.
H/T to Market Watch
