A motion has been filed by Old General Motors Corp. for a June 29 hearing related to the sale of a closed plant in Wilmington for $20 million to Fisker Automotive Inc. Old GM is now formally known as Motors Liquidation Co. The first announcement of the sale was in October when the letter of intent indicated the price as $18 million.
Fisker intends to use the plant to produce plug-in hybrid electric vehicles. The US Energy Department will provide financial assistance. According to the original announcement, Fisker will use up about $175 million on the plant, which is planned to make cars that retail for $39,900 after rebates.
Old GM said that the plant has been meticulously marketed. It should be noted that all the potential buyers, except Fisker, wanted to sell the real estate or liquidate the equipment.
Old GM is open to other offers but it was announced that a formal auction will not take place. Court papers say that if another buyer appears, Fisker won't receive a breakup fee.
The Delaware plant was included in those left behind when Old GM sold the core business in exchange for 10% of the stock of the new company plus warrants for 15%.
If the new company is profitable enough to increase the company's value to specified levels, then these warrants will have value. The US government owns 60.8% of the new GM. Old GM started the biggest manufacturing reorganization in history when it filed for Chapter 11 on June 1, 2009. The sale was completed on July 10.