Fisker Bankruptcy: The Saga Continues
A major creditor of Fisker Automotive has agreed to sell some of its loan to Hybrid Technologies LLC, one of the companies attempting to acquire Fisker’s assets out of bankruptcy.
Silicon Valley Bank reports it will vote for Hybrid’s efforts to acquire Fisker’s assets in the face of a competing bid from another company.
Fisker, the plug-in hybrid manufacturer that planned to build cars at the former General Motors facility on Boxwood road near Newport, declared bankruptcy in November.
Hybrid Technologies LLC is seeking to acquire Fisker. It already has bought the U.S. Department of Energy’s $168 million loan to Fisker at a deep discount, and hopes to use that credit to buy Fisker’s assets.
The Energy Department had the top lien on Fisker’s assets, including the Boxwood Road plant which is valued at as much as $50 million. The secondary lien on Fisker was held by Silicon Valley Bank, and the third-in-line lien was the Delaware Economic Development Authority. The authority provided Fisker with $20 million in grants and loans.
On Sunday, Hybrid Tech’s attorney filed a notice with the Wilmington-based bankruptcy court that it had paid Silicon Valley Bank $350,000 for the collateral-backed portion of its $6.6 million loan to Fisker.
According to the filing, the bank has agreed to support Hybrid Tech’s efforts to acquire Fisker through the reorganization plan submitted to the court.
A competing plan, filed last week by the Committee of Unsecured Creditors, would sell Fisker’s assets to Wanxiang America Corp.
The matter is expected to come before a bankruptcy judge on Friday. Support from creditors is considered an important piece of winning a judge’s approval for a reorganization plan.
The Delaware authority is expected to receive roughly a penny on the dollar for its grants and loans to Fisker.
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