Energy Subsidies

Green Car Company Teetering on Bankruptcy

Got $529 million DOE loan

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As a major financial deadline looms, a green car company that was approved for a $529 million loan from the U.S. Energy Department is keeping quiet about whether it could be headed towards a Solyndra-like collapse, following reports the company may be preparing for bankruptcy.

"We are not offering any official comment on the speculation around bankruptcy at this stage," Roger Ormisher, a spokesperson for the electric car company Fisker Automotive, told ABC News recently.

Ormisher was responding to questions about reports last week that Fisker had hired a prominent law firm to advise it on possible bankruptcy proceedings. The Anaheim, Calif.-based company recently disclosed that it had furloughed non-essential U.S. workers in March, a move made as the company is "in the process of identifying a strategic partner… [but] continuing to manage its day-to-day operations," Ormisher said.