Recharging the Auction for Fisker's Assets

20 January 2014 Dashboard Insights Blog

When Fisker filed bankruptcy in November, it planned to sell its assets to Hybrid Tech, the acquirer of Fisker’s $168.5 million loan from the Department of Energy, by way of credit bid. Before the sale (requiring the approval of the Bankruptcy Court) was consummated, another potential acquirer, Wanxiang Group Corp.,  emerged. Wanxiang originally offered $27.5 million in cash and subsequently increased its offer.

On January 10, 2014, United States Bankruptcy Judge Gross ruled that Hybrid Tech’s credit bid would be capped at $25 million (the price it paid for the DoE loan) and required that an auction for Fisker’s assets be conducted. As a result, Hybrid Tech increased its offer for Fisker’s assets to $55 million, comprised of a $25 million credit bid and $30 million in cash. Wanxiang’s latest offer provides for $35 million in cash and a 20% equity interest in the acquiring company.

The increased offers from Hybrid Tech and Wanxiang set the stage for a potentially active overbidding at the Court ordered auction expected to occur later this month and ultimately could result in a significantly improved recovery for Fisker’s creditors.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services