Friday, October 24, 2014
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Electric-car bankruptcy: Fisker buyer advances

Jan. 3 hearing on Richard Li's Hybrid Technology bid

Electric-car bankruptcy: Fisker buyer advances

Federal Bankruptcy Court Judge Kevin Gross in Wilmington on Tuesday set a Jan. 3 hearing on a plan for creditors to approve the proposed sale of the company to Hong Kong-based Hybrid Technology LLC for $25 million. Writes the Associated Press here. Highlights:

"Hybrid Technology LLC, owned by Hong Kong billionaire Richard Li, is seeking to buy Fisker in bankruptcy after paying $25 million for DOE's outstanding loan, resulting in a loss to federal taxpayers of $139 million...

"Fisker, which had planned to build cars at a former General Motors plant in Delaware, filed for bankruptcy protection last month, ending a long, downward spiral that began after it received a $529 million loan commitment from the U.S. Department of Energy.

"Fisker's plan calls for the transfer of substantially all of its assets to Hybrid in a private sale. Hybrid would use a $75 million credit bid based on the secured loan it holds to take ownership of Fisker.... Unsecured creditors'... claims are estimated at about $250 million." Delaware also lent the project millions and officials still hope the new owner will consider the use of a former General Motors plant in Stanton, near Wilmington, to build electric cars someday. Vice President Joe Biden, who lives near the plant, visited the site in 2009 to promote Fisker.

Joseph N. DiStefano
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PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

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

Joseph N. DiStefano
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