Wanxiang America Corp., a unit of Chinese parts maker Wanxiang Group, made a bid for Fisker Automotive just days before the carmaker was to be sold to a company affiliated with Hong Kong tycoon Richard Li, according to court documents. Fisker creditors asked the United States Bankruptcy Court in Wilmington, Delaware to cancel the sale to the Li affiliate and instead hold an open auction in which Wanxiang America plans to bid.
Wanxiang has agreed to make an initial bid of $24.725 million. It also said that it will assume some liabilities of Fisker, according to court documents. A hearing has been set Friday to consider whether Fisker should proceed with the sale or adopt the proposal.
In December 2013, US judge Kevin Gross raised concerns on Fisker's apparent rush to complete its bankruptcy process, which was filed only in November.
Wanxiang outbid Johnson Controls in 2012 in a bankruptcy auction for most of the assets of A123 Systems Inc, a company that produces batteries for Fisker. At the time, Wanxiang expressed interest in helping Fisker, which is A123's largest customer.
"They are extremely capable and knowledgeable of the industry and know how to get things done," William Baldiga, a Brown Rudnick attorney who represents Fisker's official creditors committee, said of Wanxiang.