2012 Fisker KarmaEnlarge Photo
Electric car startup Fisker Automotive has finally filed for Chapter 11 bankruptcy, more than one year since it last built one its $103,000 Karma extended-range electric sedans. It means Fisker will fail to pay its remaining portion of a $192 million loan awarded to it back in 2010 under the government’s advanced-technology vehicle manufacturing program, as well as money owed to suppliers and other creditors.
The government isn’t completely at a loss, as a company by the name of Hybrid Technology, reportedly linked to Hong Kong billionaire Richard Li, paid $25 million for the loan during a public auction, paving the way for Hybrid Technology to acquire Fisker’s remaining assets. In total, the government will lose about $139 million from its involvement with Fisker.
“After having evaluated and pursued all other alternatives, we believe the sale [of Fisker] to Hybrid and the related Chapter 11 process is the best alternative for maximizing Fisker Automotive’s value for the benefit of all stakeholders,” Fisker chief restructuring officer Marc Beilinson said in a statement. “The Fisker Automotive technology and product development capability will remain a guiding force in the evolution of the automotive industry under Hybrid’s leadership.”
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Hybrid Technology is still exploring its options for Fisker and plans to make a decision on its fate at a later date. It will provide $8 million in debtor-in-possession financing in the meantime.
Fisker listed assets of as much as $500 million and debt of as much as $1 billion in its Chapter 11 petition filed in a U.S. bankruptcy court, according to Bloomberg. Among the assets are Fisker’s brand, technology and plant in Wilmington, Delaware.
Stay tuned for an update.