Wanxiang sweetens bid for US car maker Fisker in battle with Hybrid

By VCPOST Staff Reporter

Jan 09, 2014 04:20 AM EST

Chinese car parts group Wanxiang has upped its bid for Fisker Automotive. The latest move has heated up the tussle for the failed US-based electric vehicle maker, according to South China Morning Post (SCMP).

Wanxiang increased its offer with a further $10 million in cash. The starting bid in this competitive auction now amounts to around $35.7 million, the report detailed.

William Baldiga told US Bankruptcy Court Judge Kevin Gross that the Chinese conglomerate might increase its bid further if the judge approves its proposal for the sale process. Baldiga is one of Fisker's lawyers for the official committee of unsecured creditors, the report explained.

Meanwhile, Fisker's lawyers are pressing Judge Gross to give a nod to a private sale to Hybrid Technology. The latter is a company owned by Hong Kong tycoon Richard Li Tzar-kai. When Hybrid bought a $25-million failed loan from the US Department of Energy last year, it became Fisker's senior secured lender. The said loan resulted in a $139-million loss to US taxpayers, the report stated.

California car maker Fisker had planned to build high-end cars at a General Motors facility in Delaware. The company filed for bankruptcy protection in November, SCMP reported.

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