United States Bankruptcy Judge Kevin Gross has approved the sale of assets of Fisker Automotive Holdings Inc. to Wanxiang Group Corp. for $149.2 million. The amount is nearly six times what Fisker sought when it filed for bankruptcy. The purchase still needs clearance under federal antitrust law. Gross said that the result of the auction “shows that a fair process is a good thing.”
Wanxiang beat Hybrid Tech Holdings LLC after 19 rounds of bidding by making an offer that entails $126.2 million in cash, plus equity and $8 million in assumed liabilities. Wanxiang’s offer also includes an abandoned GM factory in Wilmington that Fisker acquired in 2010.
After filing for bankruptcy in November 2013, Fisker had asked Gross to allow Hybrid to acquire its assets for around $25 million. Hybrid held a US government loan that Fisker had defaulted on without making a payment.
The selling price, however, received objections from Fisker’s unsecured creditors, who then helped bring Wanxiang into the matter in December. Wanxiang is also the owner of the successor to A123 Systems, the US battery maker that provides batteries to Fisker until its collapse due to the costs of a recall.