Published on February 18th, 2014 | by James Ayre0
Fisker Automotive Assets Acquired By Wanxiang America For $149.2 Million
The drama surrounding the bankruptcy of Fisker Automotives appears as though it may have finally reached its end — the assets of the high-end EV manufacturer were bought at auction by Wanxiang America, for a reported $149.2 million dollars.
The auction, held in Delaware bankruptcy court, lasted for more than two solid days, and encompassed 19 rounds of back and forth between Wanxiang America and Hybrid Tech Holdings. The eventual selling price of $149.2 million was about six times higher than the number first offered (in private negotiations) by Hybrid Tech Holdings.
The sale still has to be approved by presiding US Bankruptcy Court Judge Kevin Gross before it’s finalized, which is expected to happen today (Tuesday, February 18). If approved, the auction profits will be used to pay off Fisker’s unsecured creditors — the Department of Energy (DoE) won’t receive any of it, regardless of the outstanding DoE loan balance of $168 million dollars. That loan debt was previously sold to Hybrid Tech — who will recoup $25 million (the amount it paid for the DoE loan debt) from the auction proceeds.
Green Car Reports has more:
Winning bidder Wanxiang is China’s largest auto-parts group. It also owns A123 Systems, the lithium-ion cell maker whose batteries were used in the luxury range-extended electric Fisker Karma sedan.
Hybrid Tech had sought to buy Fisker’s assets privately; when Fisker filed for bankruptcy in November, it said it had agreed to that deal. Hybrid’s attempt to gain control of Fisker was spoiled by a late bid from Wanxiang, whereupon Hybrid Tech raised its bid to $55 million. Both Hybrid Tech and Fisker had sought to avoid an auction of the company’s assets.
But US Bankruptcy Court Judge Kevin Gross chose instead to put those assets up for open public auction. Fisker’s many unsecured creditors would have received little or nothing from the Hybrid Tech bid.
US Energy Secretary Ernest Moniz stated last month that the eventual owner of Fisker’s assets will be required to keep the company’s development and assembly processes in the US.