Wanxiang Group, China's auto parts maker group, has won a bankruptcy auction for the assets of Fisker Automotive with a bid of more than $149 million.
Wanxiang beat out Hybrid Technology, led by Hong Kong billionaire Richard Li, with a bid of $149.2 million in cash, including Fisker's plant in Wilmington, Delaware.
People who participated in the auction said that Wanxiang's bid, which includes more than $100 million in cash, beat out Hybrid Technology.The auction, which began on Wednesday and ended on Friday, Hybrid had offered $30 million in cash and cancellation of $25 million in debt it says it is owed as Fisker's senior secured lender.
Wanxiang had offered $35.7 million in cash and an equity stake for creditors in a reorganized Fisker, with the possibility of additional recoveries for creditors through lawsuits.
Hybrid statement:-
"After actively bidding in the auction, Hybrid has elected to retain its rights as a lender rather than continue to bid for ownership of Fisker.
Hybrid acquired the Department of Energy’s secured loan of US$168 million in November 2013, and is the senior secured creditor of Fisker. After repayment of its debtor-in-possession financing and certain other costs incurred as part of the bankruptcy proceedings, Hybrid is entitled to be repaid ahead of the unsecured creditors on account of its security and, in relation to any assets that are ultimately determined to be unencumbered, will share in those assets together with all other creditors.
Hybrid will consider taking all necessary steps and appropriate measures to protect its interests in this matter, and remains committed to exploring other long term investment opportunities in the United States."
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