The sale of collapsed hybrid-car maker Fisker may materialize by Jan. 3, 2013, under a schedule recently approved by U.S. Bankruptcy Judge Kevin Gross. Gross approved on Tuesday a faster-than-normal sale process for Fisker, which filed for bankruptcy protection on Nov. 22, 2013 in Wilmington, Del. While Chapter 11 of the U.S. Bankruptcy Code usually requires companies to try organize an auction before holding an asset sale.
"It is unusual to have, obviously, a sale without bidding procedures" and an auction, Gross said. However, Fisker claimed that it and federal officials conducted an "extensive" marketing effort before the bankruptcy was filed, according to court papers. U.S. Department of Energy held in October an auction for a $168.5 million loan it provided to Fisker, which was won by an affiliate of Hybrid Tech Holdings LLC.
At the hearing on Jan. 3, 2014, Fisker will ask Gross to allow Hybrid Tech to exchange the debt it is owed for the carmaker’s assets. The hybrid-car maker will ask Gross to approve its liquidation plan, which may get rid of potential creditor lawsuits.
On the other hand, Fisker’s former suppliers are worried that the case may proceed so quickly that potential lawsuits may be eliminated without considering the amount to be raised to pay creditors, according to William Baldiga, an attorney with Brown Rudnick LLP.
Fisker attorney Ryan Preston Dahl told Gross that for Fisker’s sale to succeed, the liquidation plan and the sale should be implemented at the same time. Gross set a hearing on Dec. 10 to decide whether a disclosure statement has ample information for creditors to decide whether to contest the liquidation plan.