Sinking electric-car manufacturer Fisker Automotive has defaulted on a federal loan payment.
The car company received loans worth $193 million from the U.S. Energy Department. On Monday, it failed to pay an $10 million installment on those loans, unnamed federal sources told the Los Angeles Times.
After the company didn’t meet its manufacturing targets in June 2011, the government stopped further lending to the company. In 2012, the company suspended production of its high-end electric-cars.
The Fisker Karma was priced at $103,000. About 2,500 were produced. Last year, a Karma broke down while Consumer Reports was testing the vehicle.
Earlier this month, Fisker fired about 75% of its workforce. A week later, the Energy Department seized $21 million from a reserve account belonging to the company. That money was not part of the federal loans Fisker received.
Fisker’s CEO and COO will testify before the U.S. House of Representatives’ Oversight and Government Reform Committee on Wednesday. The company is expected to file for Chapter 11 Bankruptcy protection if it cannot locate a buyer soon.