Jul. 29 at 3:28 PM
$FSRNQ Fisker Inc.’s bankruptcy was far from a typical bankruptcy. In November 2023, Fisker struck a deal with an anonymous investor (CVI) for a
$350 million loan in exchange for warrants that could be converted into shares starting in July 2026. A clause undisclosed to the market stipulated that CVI could convert its warrants if the 10-Q filing was delayed, with a conversion price cap of
$1.06. About three weeks after the agreement was signed—by sheer coincidence—the 10-Q was not filed by the deadline. Unbeknownst to the market, CVI then triggered its unlimited share conversion clause; the stock price plummeted from
$7.80 to around
$0.0007 in roughly five months. Fisker was killed off; it did not simply go bankrupt. It has now been 26 months since Fisker Inc. entered bankruptcy—possibly to allow the toxic lender to exit before a potential buyout by Ford, Lucid, or another company. There is
$1.1 billion in debt; shareholders stand to recover value if …
