Fisker Automotive, Inc. and Fisker Automotive Holdings, Inc. (collectively, Fisker Automotive) have entered into an asset purchase agreement with Hybrid Tech Holdings, LLC (Hybrid) for the sale of substantially all Fisker assets. Hybrid is the lender under an approximately $170-million loan secured by first liens on substantially all of Fisker Automotive’s assets. Hybrid’s parent, Hybrid Technology, LLC purchased the loan from the US Department of Energy (DOE) for $25 million.
The DOE originally offered Fisker Automotive a $529 million loan in 2009 as part of the department’s Advanced Technology Vehicles Manufacturing (ATVM) loan program. By June 2011, the DOE decided to halt funding of its loan after persistent delays in production and performance problems from Fisker, it said. In total, the government agency gave Fisker $192 million and only $28 million was paid back.
On 17 September 2013, Peter W. Davidson, Executive Director of the DOE Loan Program Office (LPO), announced that DOE had decided to auction off Fisker’s remaining loan obligation, with initial bid deadline of 7 October.
Factoring in the $28 million paid back by Fisker and the $25-million sale to Hybrid Tech, the DOE is out $139 million on the Fisker deal—less than 2% of its advanced vehicle loans to date.
To facilitate the sale process and provide for orderly distributions to creditors, Fisker Automotive has voluntarily filed petitions under Chapter 11 of the US Bankruptcy Code. Hybrid Technology has committed up to approximately $8 million in debtor-in-possession (DIP) financing to fund the sale and Chapter 11 process.
Hybrid Technology said that it is looking to restart production and sale of the Karma, and the development of other vehicles.
After having evaluated and pursued all other alternatives, we believe the sale to Hybrid and the related Chapter 11 process is the best alternative for maximizing Fisker Automotive’s value for the benefit of all stakeholders. We believe that the Fisker Automotive technology and product development capability will remain a guiding force in the evolution of the automotive industry under Hybrid’s leadership.—Marc Beilinson, Fisker Automotive’s Chief Restructuring Officer
Source: Green Car Congress
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