Feb 17 2014, 11:40am CST | by Shane McGlaun
Fisker Automotive was one of the bright parts of the green vehicle market for a short while. The company won a massive DOE loan to help it build its hybrid car the Karma. The company didn’t enjoy smooth sailing for long before it started having issues leading to it shedding most of its workers and the DOE grabbing back much of the funds it had loaned the company.
Fisker entered into Bankruptcy late last year. The first company to try to buy Fisker's assets was turned down with the judge saying that a competitive auction needed to happen. That auction moved forward recently and after 19 rounds, the winner has been named.
Chinese company Wanxiang American Corporation has won the auction. The final big that sealed the deal was valued at about $149.2 million. The deal included $126.2 million in cash and $8 million in assumed liabilities. The deal also includes a common equity in an affiliate designated by Wanxiang to receive the Fisker assets.
"We conducted a highly spirited auction resulting in an increase in value of approximately $90 million as compared to the opening bid of the auction," said Marc Beilinson, Fisker Automotive's Chief Restructuring Officer. "This is a great result for all Fisker stakeholders, including Hybrid Tech Holdings, LLC, and Fisker's general unsecured creditors. We would also like to thank Wanxiang and Hybrid for their active participation in Fisker's auction process."
The deal doesn't yet have approval of the court. The bankruptcy judge overseeing the case is expected to look at the deal this week.
Source: Fox News
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