The Fisker Automotive saga continues, and a federal bankruptcy judge would like to see the story wrap up soon. The bankruptcy filing from November 22 could reach completion on January 3 of the new year under a faster-than-normal sale process approved by US Bankruptcy Judge Kevin Gross, according to Bloomberg. The traditional bankruptcy bidding procedures will be circumvented, and Gross admitted that it is a bit odd. "It is unusual to have, obviously, a sale without bidding procedures" and an auction, Gross told Bloomberg. Fisker hasn't built a new Karma in over 18 months.
In court papers, the extended range plug-in carmaker said the fast pace is justified since the company and federal officials conducted an "extensive" marketing effort prior to the recent bankruptcy filing. The US Department of Energy (DOE) held the auction to raise funds to pay off the $168.5-million loan it make to Fisker. The judge has agreed to hold a hearing December 10 to decide whether a disclosure statement has enough information for creditors to review and decide whether they'll be opposing the liquidation plan. Fisker attorney Ryan Preston Dahl had spoken with Judge Gross on November 26, asking that the liquidation plan go forward at the same time, which the judge permitted.
It's likely that several attorneys will appear at the December 10 hearing and ask for an extension of bankruptcy court hearings. There are conflicting reports on how much is owed and whether the low-priced asset sale to Hybrid Tech Holdings LLC will come through. Fisker may owe creditors, many of them suppliers based overseas, up to a billion dollars. Hybrid Tech Holdings has been a somewhat mysterious investor group that Fisker owes money to; and Hybrid Tech may only pay the DOE $25 million at a reported $139 million loss to the federal agency.
Fisker may owe creditors, many of them suppliers based overseas, up to a billion dollars.
At the January 3 hearing, Fisker will ask the judge to allow Hybrid Tech to exchange the debt it is owed for Fisker's assets. Fisker will also be asking for approval of its liquidation plan, which could eliminate future lawsuits filed by creditors. William Baldiga, an attorney with Brown Rudnick LLP, said in court that creditors are concerned that wrapping up the case so quickly means that creditors would be undercut on what they're owed.