Tuesday, September 1, 2015

Delaware could lose $21M if Fisker cancels

Electric car plant unbuilt

Delaware could lose $21M if Fisker cancels

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If struggling Fisker Automotive fails to build the delayed suburban Wilmington, Del. electric-car plant it promised in 2009 by a 2015 deadline, "Delaware must wait in line" to "recoup" $21.5 million in grant and no-interest loan money "behind the $200 million Fisker would owe the federal government and millions more that it would have to pay Silicon Valley Bank in California," reports the Wilmington, Del. News Journal here.

Fisker is looking for other partners after the federal government declined to release the rest of the $500 million plus promised four years ago.

Vice President Joe Biden and 1,000 Delaware politicians and union workers swarmed the ex-General Motors plant to welcome founder Henrik Fisker three years ago, but so far the state has nothing except a little aborted site work to show for its cash.

"The Delaware incentive agreement contains so-called 'claw back' provisions that allow the state to seek repayment of $21.5 million in a grant and a no-interest loan if Fisker does not create jobs promised by March 2015," the News Journal reports.

"The state can collect on the $12.5 million loan to Fisker if 2,495 workers aren’t employed by the plant and suppliers by the deadline. Another $9 million grant would have to be repaid if Fisker doesn’t employ at least 1,495 workers." If there's anything left to collect.

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

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