Delaware Bankruptcy Judge Approves Sale Of Fisker Automotive to China's Wanxiang

Phillip Thomas
by Phillip Thomas

Last week, Rueters reported that Wanxiang, a Chinese parts supplier, had won the bankruptcy auction for Fisker Automotive. The bid was valued around $149.2 million. The deal comes to close after a bidding war between Wanxiang and Hybrid LLC — a group who includes Richard Li, a Fisker investor and Hong Kong billionaire. In November, Fisker asked for Hybrid Technology LLC to purchase the bankrupt company for $25 million, but creditors objected the deal in November and brought Wanxiang into the case in December.

Today Delaware, U.S. Bankruptcy Judge Kevin Gross approved of the sale to Wanxiang. He stated that the auction “shows that a fair process is a good thing.”

The sale came after a 19 round biding war between Wanxiang and Hybrid Technology LLC, and includes the shuttered General Motors assembly plant that Fisker purchased in 2010. Bloomberg reports, “[the] offer includes $126.2 million in cash, plus equity and $8 million in assumed liabilities.”

Wanxiang also bought A123 Systems Inc. last year after its bankruptcy for $256.6 million. A123 produced the Fisker batteries, which Henrick Fisker attributed to the failure of Fisker after A123 went through bankruptcy in October of 2012, and exiting in March of 2013.

Phillip Thomas
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  • Da Coyote Da Coyote on Feb 18, 2014

    "Whoever put a dime into Fisker originally should be committed." In this file photo, Fisker Automotive's Fisker Karma, a sports ... The Obama administration announced Friday it will lose $139 million ... of the loan program and President Barack Obama's investments in green energy. You're partically correct. That's committed after serving consecutive life terms for scientific ineptness, total lack of leadership, and crony politics by a certain unnamed politician with fake credentials.

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    • George B George B on Feb 18, 2014

      @Charliej The issue with Fisker is they received government money to develop a luxury electric car obviously too expensive to sell in enough volume to ever put a dent in US fuel consumption. Probably couldn't generate profits to make a self-sustaining business. It was a beautiful luxury toy sold with promises of jobs in the Vice President's home state. What did make a difference were transmissions with a wider range of gear ratios and electric power steering applied to almost all new cars. The US got attacked by Terrorists based in Afghanistan and the congressional vote to go to war wasn't even close. 420-1 in the House and 98-0 in the Senate. That's about as united and bipartisan anything in congress gets. The separate vote to go to war in Iraq was more divided, but it passed with the support of a lot of Democrats that had access to the same intelligence briefings. Probably foolish to try to do nation building in an Arab Muslim country, but I don't see treason.

  • SCE to AUX SCE to AUX on Feb 18, 2014

    Dumbest automotive purchase ever.

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    • Wsn Wsn on Feb 19, 2014

      "Dumbest automotive purchase ever." No, it's after the bailout of GM.

  • FJ60LandCruiser FJ60LandCruiser on Feb 18, 2014

    Man, that money Obama invested into "green" cars like Fisker has really paid off. There are electric cars everywhere on the roads and Fisker has paid back every penny to the taxpayers... wait, the technology will be given away essentially for free to the Chinese. Smart power, indeed.

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    • Add Lightness Add Lightness on Feb 19, 2014

      @highdesertcat If he USA were not armed to the tooth and has shown that it's willing to use nuclear weapons in anger, the whole thing would be great entertainment for the rest of the world.

  • Panzerfaust Panzerfaust on Feb 18, 2014

    Oh the humanity! First Hummer and now this! Sarcasm mode off. The good news is: Wanxiang plans to team up with Bob Lutz and his partner Gilbert Villarreal, who have established VL Automotive to build the VL Destino. So sometime in the future we'll have a four door luxury ZL-1.