US Judge set Fisker Automotive auction on February 12

Article by Anita Panait, on January 19, 2014

United States Bankruptcy Judge Kevin Gross has ruled that the February 12 auction for defunct Fisker Automotive would be between American unit of China's Wanxiang Group and Hybrid Tech Holdings, a company affiliated with Richard Li of Hong Kong. Fisker's committee of unsecured creditors has said it hopes to find more possible buyers before or on Feb. 7 deadline.

Gross also ruled that the attendance at the auction would be limited to the bidders, Fisker and a representative of the unsecured creditors committee.  The auction will be held at the law offices of Kirkland & Ellis in New York. Li's legal team is appealing Gross's order last week that will require bids to include some cash.

Li had planned to acquire Fisker's assets through a “credit bid,” which entail forgiving what the company owes on a $168 million secured loan. Under that process, however, unsecured creditors might get next to nothing.

The US government granted the loan to boost the development of green vehicle technology. Li then acquired the loan for $25 million at a government auction in 2013. Gross has limited Li’s credit bid to that amount.

Li's lawyer, however, called the ruling a "terrible precedent." "Sometimes I'm right, and sometimes I'm wrong, and I think I'm right on this," Gross said defending his ruling. "It was argued I was setting new precedent. I think I'm really following the law." Gross said he would issue a written opinion of his credit bid ruling. Hybrid has said its initial bid would be worth $55 million.

Topics: fisker

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016