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

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries