Sale of Fisker to Wanxiang Heralds a New Beginning

After some last minute intrigue it appears the fate of Fisker Automotive has finally been decided. Initially it appeared that the company's assets would be sold to Hybrid Tech Holdings llc, a Hong Kong-based company controlled by businessman Richard Li. However, a Delaware Bankruptcy Court put the company's holdings up for an open public auction allowing a winning bid from China's Wanxiang America.

The bottom line was price with Wanxiang outbidding the competition. Fisker filed for bankruptcy in November of last year and Hybrid offered $25 million in a private bid that would have given little or nothing to Fisker's unsecured creditors. At auction Hybrid raised their bid to $55 million only to lose out to Wanxiang's bid of $149.2 million. Wanxiang is China's largest auto-parts group and the owner of A123 Systems, they make a lithium-ion battery that was used by Fisker.

The Sale of Fisker Still Up in the Air

The sale of electric car company Fisker is turning out to be quite a soap opera. A decision by US Bankruptcy Court has put the remains of the company up for public auction. A late bid by Wanxiang, China's largest auto parts manufacturer has reopened the bidding on Fisker's DOE loan debt. Although it looked like Hybrid Technology Holdings (HTH), an investor group led by Hong Kong tycoon Richard Li was set to take control of Fisker's remaining assests, the late bid from Wanxiang has scuttled the deal.