Wanxiang places winning bid for Fisker

Wanxiang places winning bid for Fisker

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Chinese automotive parts manufacturer Wanxiang Group has won the auction for bankrupt luxury plug-in car manufacturer Fisker Automotive Holdings.

The winning bid of USD $149.2 million bid, was almost six times the amount Fisker was seeking when it filed for bankruptcy.

Wanxiang triumphed over rival bidder Hybrid Tech Holdings, with an offer that includes USD $126.2 million in cash and USD$8 million in assumed liabilities, says Fisker.

Delaware bankruptcy Judge Kevin Gross is scheduled to consider the approval of the deal this week.

Fisker had originally asked Gross to let Hybrid buy the company for about USD$25 million when it filed for bankruptcy last year.

Hybrid held the USD$25 million Department of Energy loan to Fisker that the car maker had defaulted on. However unsecured creditors objected to the price of the deal and brought Wanxiang, into the fray in December.

Now that it has secured the assets and intellectual property, Wanxiang could revive the Fisker operation. It would also provide an entry point to selling cars in the USA.

Wanxiang already owns the successor to the US company that supplied batteries to Fisker until collapsing under the cost of recalling defective power packs.

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