Technology
The fight over Fisker’s estate is already heating up
Fisker is just days away from filing for Chapter 11 bankruptcy, and the fight over its assets has already begun, with one lawyer claiming the startup is liquidating assets “outside of court supervision.”
At issue is the connection between Fisker and its largest secured lender, Heights Capital Management, an affiliate of monetary services company Susquehanna International Group. Heights loaned Fisker greater than $500 million in 2023 (with an choice to convert that debt into shares of the startup) at a time when the corporate’s financial troubles were emerging behind the scenes.
This financing was not originally secured by any assets. This modified after Fisker breached one in every of the arrangements for failing to timely file its third-quarter financial statements in late 2023. In exchange for waiving the breach, Fisker agreed to provide Heights priority for all of its current and future assets , giving Heights significant leverage. Not only did Heights gain pole position to find out what would occur to their assets in a Chapter 11 proceeding, however it also gave them the chance to rent their preferred restructuring specialist to oversee the corporate’s slow slide out of business.
Alex Lees, a lawyer with Milbank representing a gaggle of unsecured creditors owed greater than $600 million, said in the course of the first hearing within the proceedings Friday in Delaware bankruptcy court that it had taken “too long to get to this point.” He said Fisker’s late filing with regulators was a “minor technical error” that someway led to the startup “essentially handing over (the) entire company to Heights.”
“We think this was a terrible deal for (Fisker) and its creditors,” Lees said on the hearing. “The right thing to do would have been to declare bankruptcy a few months ago.” Meanwhile, he said, Fisker is “winding down business outside the court’s supervision” for Heights, which he said amounts to “suspicious activity.” Fisker spent the pre-bankruptcy period cutting prices and selling off vehicles.
Scott Greissman, a lawyer representing Heights’ investment arm, said Lees’ comments were “totally inappropriate and completely unsubstantiated” and derided them as “designed as sound bites” to be picked up by the media.
“There could be a lot of disappointed creditors in this case,” Greissman said, “more than Heights.” He said Heights gave Fisker “tremendous credit.” He later added that even when Fisker is in a position to sell its entire remaining inventory – about 4,300 Ocean-branded SUVs – such sales “may possibly pay off a fraction of Heights’ secured debt,” which currently stands at greater than $180 million.
Lawyers told the court Friday that they’d essentially entered into an agreement to sell Ocean SUVs to an unknown vehicle leasing company. However, it is not immediately clear what other assets Fisker could sell to supply repayment to other creditors. The company claimed to have assets price between $500 million and $1 billion, but filings up to now have only detailed production equipment, including 180 assembly robots, a complete line of chassis, a paint shop and other specialized tools.
Lees was not alone in his concerns about Fisker’s bankruptcy filing. “I don’t know why it took so long,” Linda Richenderfer, an attorney with the U.S. Trustee’s Office, said in the course of the hearing. She also noted that she was still reviewing latest submissions late Thursday and within the hours before the hearing.
She also expressed “great concern” that the case could turn right into a straight Chapter 7 liquidation after the sale of Ocean’s inventory, leaving other creditors scrambling for the scrap.
Greissman said at one point that he agreed that Fisker “probably took longer” than needed to file for bankruptcy protection and that a few of these disputes might have been “easier resolved” if the case had began earlier. He even said he agreed with Richenderfer that “even with a fleet sale, Chapter 11 may not be sustainable.”
The parties will meet again at the following hearing, which can happen on June 27.
Before dismissing everyone, Judge Thomas Horan thanked all parties involved for attending to the hearing “reasonably smoothly” despite the deluge of paperwork this week. He specifically criticized Trustee USA’s office for working under “really difficult circumstances” to “crawl the case” with “minimal controversy, given the general scheme of things.”
“I imagine there are a few people who want to get some sleep right now,” he said with a smile at the top of the hearing.
Technology
World of Warcraft turns 20 years old
Blizzard Entertainment first released World of Warcraft in November 2004, so The New York Times celebrated an anniversary describing how 20 years later we will still see the influence of online multiplayer role-playing games.
First, while multiplayer games and early social networks like MySpace already existed, WoW provided an actual preview of a future where anyone could connect with friends and strangers on the (*20*). Second, the sport made billions of dollars on a business model that combined monthly subscriptions with in-game purchases (including pets and animals that players could ride), becoming a large money cow for Blizzard and paving the way in which for future online business models.
The game also appeared immortal memesattracted celebrity fans and suggested epidemiologists argue that an incident involving the uncontrolled spread of a fantasy disease could possibly be investigated to realize insight into real-world epidemics.
Other than that, I didn’t think the movie was that bad.
Technology
Exploration Company is raising $160 million to create Europe’s answer to SpaceX Dragon
Only two firms currently deliver cargo to and from the International Space Station, and each are based within the United States. Exploration Companywhich operates in Germany, France and Italy, wants to change that: it has just closed a big round of financing to proceed its mission to construct Europe’s first reusable space capsule.
The $160 million Series B round will fund further development of the Nyx spacecraft, which is able to find a way to carry 3,000 kilograms of cargo to Earth and back. The company, founded three years ago by aerospace engineers Hélène Huby, Sebastien Reichstat and Pierre Vine, goals to conduct Nyx’s maiden flight to and from the ISS in 2028.
“We are the first company in the world where, for the first time, it is funded primarily by private investors,” Huby said in a recent interview. This contrasts with SpaceX’s Dragon capsule, which it said was “primarily funded by NASA.”
With the brand new financing, led by Balderton Capital and Plural, the startup’s total funding now stands at over $208 million. Bessemer Venture Partners, NGP Capital and two European sovereign funds, French Tech Souveraineté and DeepTech & Climate Fonds, also participated within the Series B.
“We have managed to deliver on the promises we have made over the last three years,” Huby said. “We were able to hit our cash target every quarter… Investors could see that we were basically able to deliver on time, on cost and with quality.”
The startup has partnered with the European Space Agency (ESA), which has recognized the necessity to support indigenous space launch and transportation capabilities. Earlier this 12 months, Exploration Company was awarded a research contract value roughly €25 million ($27 million) to develop cargo return services. This contract will run until 2026, after which additional competitive contracts are expected to follow. ESA’s goal is to launch no less than one capsule to the ISS in 2028.
The structure of the contract, called the LEO Cargo Return Service Contract, is similar to the NASA Commercial Orbital Return Transportation Services program, which the agency launched in 2006. This program resulted in multi-billion-dollar transportation contracts with SpaceX and Orbital Sciences Corporation (now Northrop Grumman).
It’s a promising start, but equally promising is the potential The Exploration Company sees on the industrial side. About 90% of the startup’s $770 million order book comes from private station developers Vast, Axiom Space and Starlab, according to the most recent reports.
The first Exploration Company demonstration vehicle was launched this summer on the maiden flight of Ariane 6, but it surely was not deployed due to an issue with the rocket’s upper stage. A second, smaller-scale demonstration mission, called Mission Could, is scheduled to launch aboard a SpaceX Falcon 9 next 12 months.
“I really respect what SpaceX has accomplished,” Huby said. “We try to get the most out of it, we are inspired by what they achieved. However, we also believe that the world needs more competition and we want to build an alternative step by step. We are very aware that we are late, that we are much smaller, etc., but we have to start.”
Technology
Dissatisfied X users switch to Bluesky
Welcome back to the week in review. This week, we discuss the large surge in Bluesky users, Elon Musk co-heading Trump’s “Department of Government Efficiency,” and Mark Zuckerberg’s latest foray into extreme wife-male behavior. Let’s go.
Bluesky is experiencing significant growth as X users dissatisfied with the platform’s latest political decisions move to a rival social network. The decentralized social media platform has grown to over 16 million users, including Swifties. If you are making a change – or no less than want to see if the grass is greener (or bluer) on the opposite side of the road – we have put together a guide on how to start.
Tesla’s Cybertruck faces sixth recall in the course of the 12 months, affecting 2,431 units. Tesla’s report shows that these trucks are or were equipped with a faulty inverter. Unlike the October Cybertruck recall, which might be resolved with an over-the-air update, Tesla will need to physically replace the recalled inverters for this batch. The electric vehicle maker said it could do it without cost.
Elon Musk will co-chair with President-elect Donald Trump Department of Government Effectiveness, whose acronym refers to Musk’s favorite cryptocurrency. Musk, together with biotech entrepreneur and former presidential candidate Vivek Ramaswamy, will lead the department to help the Trump administration “dismantle government bureaucracy, cut excess regulation, slash wasteful spending and restructure federal agencies.”
News
Mark Zuckerberg 🤝 T-Pain: Mark Zuckerberg commissioned T-Pain to write and record an acoustic cover of Lil Jon and The East Side Boyz’s “Get Low” as a present to his wife Priscilla Chan. Please note that he actually sings the infamous “to the window, to the wall” lyric. Read more
Standing desks usually are not as healthy as you think that: Apologies to standing desk users, but a brand new study has found that standing for greater than two hours a day doesn’t protect against the chance of heart problems and really increases the chance of circulatory problems. Read more
Talk to Tuah dating coach: Social media star Haliey Welch launched Pookie Tools, an AI-powered dating advice app for Gen Z singles. The app’s chatbot helps you write conversation starters, and one other tool predicts whether a possible match is lying about your height. Read more
The author took home $200 million: The generative artificial intelligence startup raised $200 million at a $1.9 billion valuation to expand its platform. CEO May Habib says the brand new funding will probably be used for product development and “consolidating the company’s leadership in the enterprise generative AI category.” Read more
Amazon fights against Temu: To higher compete with highly popular competitors Temu and Shein, Amazon launched the Amazon Haul store, offering discounted and mass-produced products, most of that are shipped from China. Read more
Just Eat sells Grubhub: The Dutch food delivery company sells Grubhub to Wonder Group in a deal valued at $650 million. That’s 91% lower than the $7.3 billion Just Eat Takeaway paid the corporate just 4 years ago. Read more
SBF is coming to the large screen: Lena Dunham is working with Apple and A24 on an adaptation of Michael Lewis’s book “Going Infinite,” which chronicles the lifetime of Sam Bankman-Fried and the implosion of FTX. Now I ponder who will probably be solid as SBF… Read more
Get ready for more AI video mistakes: InVideo launches an AI-powered generative video creation feature that enables users to use prompts to create videos in a wide range of styles, including live-action, animated, or anime. Read more
Apple Wall Mount Tablet: Apple is reportedly planning to release a tablet that might be mounted on a wall, control smart home appliances and make video calls in March 2025. The device will, in fact, be equipped with Apple Intelligence technology. Read more
Ads appear on Perplexity: An AI-powered search engine is experimenting with promoting. Ads on the positioning will initially run within the US and will probably be formatted as “sponsored follow-up questions” from partners including Indeed, Whole Foods, Universal McCann and PMG. Read more
You can now play Hot Cross Buns in your phone: The latest Artinoise product is a new edition of the classic plastic recorder. The portable device might be connected to any smartphone, tablet or PC equipped with a USB-C port, effectively transforming it right into a musical instrument. Read more
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