Bankruptcy judge, creditors approve liquidation of Fisker assets

Rechargeable hybrid vehicles are gradually becoming more visible on roads in California and throughout the country, and most of the major car manufacturers have indicated their intention of competing in the luxury hybrid market. One of the first companies to enter that market was Anaheim-based Fisker Automotive.

Fisker encountered troubles, however, after the company's battery supplier filed for bankruptcy; the costs of a safety recall took their toll; and a shipment of vehicles was destroyed by Hurricane Sandy. Hybrid Tech Holdings eventually agreed to buy a government loan to Fisker for $25 million, and in 2013 Fisker filed for Chapter 11 bankruptcy. Around that same time, Hybrid planned to acquire Fisker.

In more recent developments, the Chinese company Wanxiang Group Corp. outbid Hybrid with an offer of $149.2 million for Fisker's assets. That figure is about six times higher than the initial bid. In February, a court approved the deal with Wanxiang, which already owns the successor to Fisker's former battery supplier.

The creditors in the bankruptcy case overwhelmingly approved of the Wanxiang deal, the proceeds from which will be distributed to Fisker's creditors. A bankruptcy judge in Delaware recently approved the plan for liquidation. The chief restructuring officer for Fisker referred to the plan as a "fully consensual resolution."

As the Fisker case illustrates, the life of a business can involve many cycles of growth and contraction, and owners of companies large and small have to be aware of the risks. Sometimes use of an exit strategy such as bankruptcy is the best option for resolving a debt problem. In any case, whether you are a creditor, debtor or trustee, there are legal avenues for achieving a favorable solution.

Source: Bloomberg Businessweek, "Fisker Liquidation Approved After Wanxiang Asset Sale," Dawn McCarty, July 28, 2014

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions