Bankruptcy Judge Orders Remains Of Fisker Auto To Be Auctioned

After a court hearing on Friday, the fate of Fisker Automotive is even more up in the air, and as uncertain as ever.

U.S. Bankruptcy Judge Kevin Gross ordered a competitive auction of Fisker's assets, according to theAssociated Press, after a last-minute bid by Chinese auto-parts conglomerate Wanxiang.

Gross rejected investor Hong Kong-based Richard Li's $25 million bid for the company, which Fisker itself wanted the court to approve.

Those funds from Li's investor group--Hybrid Technology Holdings--would have gone directly to the U.S. Department of Energy to pay off a portion of Fisker's outstanding $168 million low-interest loan.

Hybrid then planned to take control of Fisker using a $75 million credit bid based on what it claimed it was owed as Fisker's senior secured lender during the automaker's ongoing bankruptcy.

The group has also offered an additional $2 million in cash, and to waive fees it claims it would be owed as Fisker's lender.

However, Hybrid has shown no interest in building cars at the former General Motors Boxwood Road plant near Wilmington, Delaware that Fisker had secured.

The News Journal reports that the investor group had considered selling the plant to pay off creditors.

Wanxiang's plans.....Read Full Article