Fisker asks bankruptcy court to reject company sale to China's Wanxiang Group

January 3
2:31 AM 2014

American automaker Fisker Automotive Inc. asked a federal judge to approve its proposed sale to a Hong Kong tycoon rather than a Chinese suitor, as it is claiming that the latter was to blame for its bankruptcy.

According to Reuters, a courtroom showdown is set for January 10 that will determine the future of the defunct maker of plug-in hybrid sports cars. US Bankruptcy Court Judge Kevin Gross must decide if Frisker's business will be put to open auction or sold to an affiliate of Hong Kong billionaire Richard Li as the automaker proposed.

Fisker's plans were thrown into doubt on Monday, when the official creditors' committee proposed auctioning the business. The group also presented an initial $24.725 million bid from the US unit of China's top auto parts company, Wanxiang Group, the report said.

Fisker attacked the creditors' proposal in a series of court filings on Wednesday with the bankruptcy court in Wilmington, Delaware. It noted that after Wanxiang bought battery maker A123 Systems Inc., it cut supplies to Fisker, Reuters said.

Court records show that a majority of unsecured creditors such as design consultants and suppliers voted to reject the plan to sell Fisker to Li, the report said. 

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics