Lawyers for Fisker Automotive Holdings Inc. have managed to convinced United States Bankruptcy Judge Kevin Gross in Wilmington that the carmaker’s Chapter 11 should proceed at an unusually rapid pace. Gross began a Tuesday hearing by suggesting that Fisker should slow down its plan to sell its assets to Hong Kong tycoon Richard Li and give creditors four more weeks to get hold of the situation, saying that it should “allow time for the creditors' committee to continue and complete its investigations."
Fisker filed for bankruptcy on Nov. 22, 2013, while a creditors' committee was established on Thursday. The carmaker has not built a car in almost 18 months and Gross said that there was no business that has to be rescued via bankruptcy. "This is not the case of a melting iceberg or a burning omelet or anything of that nature," he said.
Attorneys for both Fisker and its creditors beg to disagree. In fact, no one took up the judge's suggestion to slow the process. said Sunni Beville, a lawyer at Brown Rudnick who represents the committee of unsecured creditors, remarked that the creditors' committee agreed that Fisker’s timeline is the “right timeline."
During the hearing Gross approved a provisional disclosure statement explaining Fisker's repayment plan. The statement will be sent to creditors to guide their vote. Gross set a January 3, 2014, hearing during which he will decide whether to approve Fisker’s plan of reorganization as well as the sale of its assets, which are being sold to a company affiliated with Li.