Electric vehicle manufacturer Fisker Inc. (OTC: OTC:FSRN) has been notified by investor CVI Investments, Inc. of a series of defaults on its senior secured notes, leading to the investor demanding immediate redemption of the debt, according to a recent 8K SEC filing.
The events of default were triggered by Fisker's failure to meet repayment obligations for the week ending on the date of May 10, 2024, as well as subsequent failures including non-payment of amounts due under other notes and the company's inability to fulfill required security filings and documentation by the May 20, 2024 deadline. Additionally, the expiration of the Forbearance Agreement on May 17, 2024, and a missed repayment for the week ended May 17, 2024, further contributed to the default status.
CVI Investments has exercised its right to accelerate the debt, compelling Fisker to redeem 100% of the outstanding 2024 Note immediately. This includes the principal amount of $3,456,000, along with any accrued interest, late charges, redemption premium, and other fees as stipulated in the Securities Purchase Agreement and the 2024 Note.
The acceleration of the 2024 Note also follows the occurrence of defaults under and acceleration of Fisker's 2025 Notes and its 2.50% Convertible Senior Notes due in 2026.
This development comes as a significant financial challenge for Fisker, which has been working to establish itself in the competitive electric vehicle market. The company's inability to adhere to the financial and legal covenants of its agreements has led to this demand for immediate payment, which could impact its financial stability and operations.
Investors and stakeholders in Fisker are closely monitoring the situation as the company navigates through these financial difficulties. The information disclosed is based on the details provided in the company's SEC filing.
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