That debt was not secured by any collateral, but instead could be converted into Fisker stock. When Fisker was late in filing its third-quarter financial results in late 2023, that breached one of the covenants of the deal with Heights. Somehow — and it's still unclear exactly what happened here — Fisker's way of making good with Heights was to pledge all of its assets as collateral for the remaining debt. "What would be a relatively benign event in most other situations has had a dramatic impact" on Fisker, Mannal said in the hearing.