United States Bankruptcy Judge Brendan Linehan Shannon has approved a plan by Fisker Automotive Holdings Inc. to borrow $4.98 million from Wanxiang Group. Fisker will return to court March 21 to ask for approval of the rest of a $10.5 million debtor-in-possession loan. The new financing will replace an $8.1 million loan from Hybrid Technology LLC.
Hybrid terminated the financing agreement and declared all principal and accrued interest due after Wanxiang won court approval to acquire the carmaker’s assets. Fisker filed for bankruptcy protection on Nov. 22 with a plan to sell its assets for around $25 million to Hybrid, which held a US government loan that Fisker had defaulted on.
However, Fisker’s unsecured creditors objected to the price and helped bring Wanxiang into the matter in December 2013.
An auction was held in February with Wanxiang winning against Hybrid after 19 rounds of bidding with an offer that included $126.2 million in cash, plus equity and $8 million in assumed liabilities. Wanxiang’s acquisition still requires approval from US antitrust regulators. Fisker listed assets of up to $500 million and debt of up to $1 billion in its Chapter 11 petition.
Fisker Automotive's first vehicle is the Karma. Built to the company's Sustainable and Accountable Design ethos, it signifies an impressive forward leap for the automobile industry as a whole.
Fisker appreciates that designing, manufacturing, selling, and disposing vehicles is a very intensive undertaking, both in energy and resources. As a new undertaking beginning with a fresh start, Fisker believes it has amazing opportunities to better this practice and re-conceive what everyone can anticipate from its automobile manufacturers.
By pursuing methods of increasing efficiency and reducing environmental impact, such as its carbon footprint, through the value chain, Fisker is endeavouring to be the most dedicated automaker in sustainability and accountability.
The Fisker Karma and all upcoming Fisker automobiles will be marketed and serviced via a worldwide network of established, independent retailers. In the US, there are over 40 locations, with a similar plan for Europe.
Fisker's retail network in Europe is under development, with importers as management, including the Emil Frey Group in Switzerland and Nellemann in Denmark. Fisker Italia in Italy and BD Otomotive in Turkey complete the company's footprint in Europe. Fisker also is part of a non-exclusive distribution agreement with China Grand Automotive in Shanghai.