Fisker’s plan to liquidate its assets has been approved by the bankruptcy court in Delaware. This decision resolves the issue of who should cover the labor costs related to two recalls on the bankrupt EV startup’s SUVs.
The court’s approval of the plan marks the end of a four-month process of Fisker’s bankruptcy. It allows a newly appointed trustee to oversee the sale of approximately $1 billion in assets, including manufacturing equipment used for Fisker’s electric SUVs. The plan also specifies how much money the company’s various creditors will receive from the asset sale.
The plan addresses the labor costs associated with two recalls on Fisker’s Ocean SUVs. While three recalls can be fixed with a software update, two require replacement parts. Initially, Fisker stated that it would cover the cost of parts but not labor. However, after legal issues arose, the company changed course and agreed to cover the labor costs for the recalls.

Any owner who addresses the recalls before the plan takes effect will need to pay for labor costs upfront. They can then submit a reimbursement claim to the trustee overseeing Fisker’s liquidation. Owners who have already paid for labor to fix the recalls can also seek reimbursement through this process.
After the plan’s effective date, owners who get the recalls fixed can visit an authorized service center and have the repairs done without paying for labor. The service centers will then need to submit their reimbursement claims to the liquidation trustee.
Fisker has also resolved a last-minute issue with American Lease, the New York-based leasing company that purchased the startup’s remaining fleet of around 3,000 Ocean SUVs for $46.25 million. American Lease raised concerns about moving crucial data onto a new server for operating the EVs. As a solution, American Lease agreed to pay an additional $2.5 million over five years to control the cloud services keeping the Ocean SUVs running. The Fisker Owners Association will also receive access to this data and additional support services for existing owners in the future.