US Energy Department starts considering bids for Fisker loans

Article by Anita Panait, on October 14, 2013

The United States Department of Energy has began looking at offers to acquire Fisker Automotive's federal loan on October 13, 2013. The move is seen as the possible start of an extensive and expensive process to bring Fisker back to life. The carmaker has not built a vehicle in about 15 months and has not had sufficient funding to pay millions in outstanding bills.

It also sent home most of its workers in April after it run short of cash – just a month after co-founder and executive chairman Henrik Fisker had his exit. The Energy Department remarked in September that it planned the auction after "exhausting any realistic possibility" that it could recover all the $168 million still owed by Fisker.

Deadline for bids for Fisker's DOE loan was on Oct. 7, with an auction set Friday. Potential bidders are required to offer at least $30 million to qualify, with 10 percent down due with the bid, two people privy with the process told Reuters.

Reviving Fisker, however, would entail more cost. According to sources privy with Fisker’s finances, reviving the carmaker’s original plan to build several models could cost up to half a billion dollars. US officials in charge of the bidding process could decide on a winner as early as next week.

The winning bidder and the department will then agree on the final details of the note sale. DOE granted a $529-million loan to Fisker in 2009 under a federal program to promote green vehicles. Fisker, however, failed to achieve performance targets, forcing the Energy Department to freeze its credit line in June 2011.

Topics: fisker

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