Beleaguered electric vehicle startup Faraday Future is restructuring in order to survive. The company announced a new deal on Monday that could chart a path forward. The startup has been without a main financial backer for months, is unable to bring back hundreds of employees still on unpaid leave, and recently sold its own headquarters to generate cash. But its new path, financial experts tell The Verge, resembles an out-of-court bankruptcy.
The would-be automaker announced that Chicago-based Birch Lake Associates will provide the startup with bridge financing, or a short-term loan, of “up to $225 million.” Of that potential total, $75 million will come in the form of “senior secured” debt financing, meaning the loan from Birch Lake...
