Wanxiang increases offer for Fisker Automotive with an additional $10 million
Wanxiang Group is a large Chinese auto company that has increased their offer for Fisker Automotive. Wanxiang increased the offer by another $10 million in cash to around $35.7 million. Wanxiang may increase the offer by even more if the judge approves of the proposed sales process, according to an attorney with Fisker’s official committee of unsecured creditors, William Baldiga. Baldiga said that there is “considerable room to go.”
Fisker’s attorneys is pushing to prevent a sale to Wanxiang. Fisker wants a judge to approve of a private sale to Hybrid Technology LLC, which is a company owned by billionaire Richard Li. Hybrid became Fisker’s senior secured lender after buying a failed Department of Energy loan for $25 million this past fall.
Fisker Automotive filed for bankruptcy in November. Several years ago, the Department of Energy gave Fisker Automotive $529 million as part of a loan commitment. Fisker drew around $192 million in the loan commitment, but DOE officials suspended the funding in 2011 after the company failed to meet several milestones for the Karma luxury vehicle.
The unsecured credits are owed around $250 million. The attorneys for the U.S. trustee and unsecured creditors are not sure about the speed that Fisker is moving at. Gross said that the attorneys are not going to be pressured by Hybrid to make a decision at the hearing this week. Hybrid wants to buy Fisker’s remaining assets using a $75 million credit bid.
Wanxiang attempted to previously acquire Fisker. But in a separate transaction, Wanxiang acquired A123 Systems, the bankrupt battery company that used to supply Fisker.