Fisker Automotive has filed for Chapter 11 bankruptcy protection as part of its restructuring plan. Investor group Hybrid Tech Holdings LLC is acquiring Fisker's assets and is providing $8 million in debtor-in-possession financing to fund the carmaker's sales and restructuring. The United States Department of Energy sold its green-technology loan in Fisker to Hybrid Tech for $25 million.
Hybrid Tech bought one loan granted by the Department of Energy that has an initial worth of $168 million. The sale allowed DOE to recoup around $53 million on its $192 million investment in Fisker. Marc Beilinson, Fisker's chief restructuring officer, said in a statement that after evaluating and pursuing all other alternatives, the sale to Hybrid and the related Chapter 11 filing is the best alternative for maximizing the carmaker's value for "the benefit of all stakeholders."
He said that under Hybrid's leadership, Fisker's technology and product development capability "will remain a guiding force in the evolution of the automotive industry." Hybrid Technology said in a statement that the purchase of the government loan was the first step toward resuming production and sale of the Fisker and the development of other hybrid-electric vehicles.
Caroline Langdale, a spokeswoman for Hybrid Technology, said in a statement that the company will make decisions about the structure and footprint of the new business as they examine Fisker's opportunities. While the design of the Karma has been praised, a horde of quality issues hurt Fisker's image and exhausted its cash. The carmaker even fired most of its employees in April to save cash as it failed to find a buyer.