Fisker Automotive executives are due before a Congressional panel Wednesday to answer questions about whether it'll ever repay nearly $200 million in Energy Department and state loans to taxpayers.
The electric carmaker, which laid off 75% of its employees earlier this month, missed its first loan payment to the Energy Department on Monday. Treasury has already seized $21 million in an effort to get back some of the taxpayer money loaned to it, but most of the $192 million that was given to the company over the three years is very much at risk.
The company suspended production of its only car, the $107,850 Karma, in February. That followed a recall of most of the cars built in the second half last year due to a possible problem with the battery's cooling system and negative reviews from Consumer Reports.
The Energy Department originally promised Fisker $529 million in loans three years ago. But as the company quickly fell into financial trouble, the department pulled back on that commitment and stopped giving Fisker money in June 2011, after it had received $192 million.
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