Fisker Buzz Forums banner

1 - 20 of 64 Posts

·
Registered
Joined
·
535 Posts
Just got call from my contacts at HSS and I was told Fisker filed chapter 11 .
Case number 13-13086 13-13087 check it out
http://www.autonews.com/article/201...utonews-blast&r=6990A1322578H3Z#axzz2lQ4vem7C
From Bloomberg:
What’s left of electric-car maker Fisker Automotive Inc. will be acquired as part of a bankruptcy reorganization by Hybrid Technology LLC, after it won an auction for a defaulted loan made by the U.S. Energy Department.
U.S. taxpayers lost $139 million in the deal, in which Hybrid won the rights to the loan and agreed to acquire Fisker’s assets, which include a shuttered General Motors Co. factory in Wilmington, Delaware, that Fisker was supposed to reopen.
Fisker today filed for Chapter 11 bankruptcy protection as part of the deal.
The Energy Department decided to auction its interest in Fisker, whose $103,000 Karma was driven by actor Leonardo DiCaprio and singer Justin Bieber, after the company defaulted on its loan without making a payment and attempts to find a buyer failed. The Fisker loan made President Barack Obama a target of Republican opponents who accused him of “crony capitalism.”
Hybrid Technology is being represented in Washington by the Glover Park Group, a strategic communications firm, whose leadership includes Joe Lockhart, White House spokesman during Bill Clinton’s presidency.
A Hybrid spokesman declined to say where the company is based or who its leadership is. “Unfortunately we can’t comment beyond the press release at this time,” Caroline Langdale, the spokesman, said in a phone interview.
Vehicles Destroyed
Fisker, based in Anaheim, California, received $192 million from an initial loan commitment of $529 million from a program intended to spur production of alternative-energy vehicles. It was cut off from the remaining money in 2011 after missing production milestones for the Karma.
The company was co-founded by and named after former Aston-Martin designer Henrik Fisker, and backed by $1.2 billion in venture-capital investments. It stopped making cars last year after a Karma quit running during a Consumer Reports road test and failures in batteries supplied by A123 Systems Inc. led to a U.S. recall and A123’s bankruptcy.
Most of Fisker’s remaining vehicles were destroyed by flooding during Hurricane Sandy after it ceased production, and its insurance company refused to pay for the damages. Henrik Fisker quit after about 75 percent of the company’s employees were fired.
When it resorted to auctioning off the loan balance, the Energy Department said it would require bidders to commit to doing design and engineering work in the U.S., building on the program’s intention to create or retain jobs in the country.
The department recouped about $28 million from Fisker’s accounts after the first payment was missed. Fisker faces millions of dollars in court judgments over unpaid bills, and would have had more restructuring options absent the government’s financial interest.
Taking Applications
The vehicle-lending program still has 60 percent of its $25 billion in available money and hasn’t awarded a loan since 2011. The department recently said it would begin taking applications again, though legislation has been introduced in the U.S. Senate to stop that from happening.
Fisker, which produced the Karma in Finland, planned to use most of its $529 million loan commitment to develop a second model at the former GM plant in Delaware. It was never produced.
Fisker’s loan was the largest approved for three startup automakers granted loans. The Energy Department earlier auctioned the balance of Vehicle Production Group LLC’s $50 million loan after the closely held wheelchair-van maker failed without making a payment.
Tesla Motors Inc. repaid its $465 million loan in full in May, nine years early. Ford Motor Co. and Nissan Motor Co. are making regular payments on their loans.
To contact the reporter on this story: Angela Greiling Keane in Washington at [email protected]
To contact the editor responsible for this story: Bernard Kohn at [email protected]
 

·
EX:Shadow/Canyon #324
Joined
·
1,217 Posts
Do you know anything about Hybrid Tech.?
From the San Jose Mercury News article:

Hybrid is owned by Hong Kong billionaire Richard Li.
 

·
Premium Member
Joined
·
4,659 Posts
Nice timing for a change. They filed on a Friday that happens to be the 50th anniversary of the JFK assasination and before a holiday weekend so that the news gets buried, Congress is on recess and they have their hands full with the ACA and Filibuster rule changes, so they will not have enough attention span to make hay out of this, and it is far enough away from the 2014 elections that no one is going to remember it next year.

Very Un-Fisker like timing. Someone must be actually thinking things through over there. Unless Mr. Li is feeling generous, this is going to wipe out all the equity holders and the vendors will probably have to take a pretty major haircut, but if they really start production back up again, it's goodish news.
 

·
Registered
Joined
·
25 Posts
Nice timing for a change. They filed on a Friday that happens to be the 50th anniversary of the JFK assasination and before a holiday weekend so that the news gets buried, Congress is on recess and they have their hands full with the ACA and Filibuster rule changes, so they will not have enough attention span to make hay out of this, and it is far enough away from the 2014 elections that no one is going to remember it next year.

Very Un-Fisker like timing. Someone must be actually thinking things through over there. Unless Mr. Li is feeling generous, this is going to wipe out all the equity holders and the vendors will probably have to take a pretty major haircut, but if they really start production back up again, it's goodish news.
Well put Fab, I'm with you on this!

:fisker:OrphanDave
 

·
Dutch Karma
Joined
·
25 Posts
Hybrid Technology Buys Fisker Automotive's Defaulted Loan

Finally!!

Full article @ The Wall Street Journal:

Hybrid Technology LLC has agreed to buy Fisker Automotive Inc.'s defaulted federal loan as part of its effort to buy the company, while Fisker filed for Chapter 11 bankruptcy protection as part of the deal.

The Energy Department said that of the $192 million owed to the government by Fisker, it has recovered $53 million, leaving $139 million unpaid, the department said.

The Energy Department in October launched an auction of Fisker's loan, which had a $168 million unpaid balance. The department didn't disclose how much Hybrid Technology paid to acquire the loan.

Fisker built $109,000 plug-in hybrid sports cars, but the company stopped producing vehicles in July 2012 and effectively ceased operations earlier this year. The Anaheim, Calif.-based company filed for bankruptcy in Wilmington, Del.

"This purchase marks the first step toward an acquisition of Fisker's assets by an affiliate of HT that will eventually lead to the restarting of production and distribution of the Karma sedan, as well as the development and production of future advanced hybrid electric vehicles," Hybrid Technology said in a statement.

Hybrid Technology committed to following through with some kind of presence in the U.S., a condition of the original loan to Fisker. The company owns a former General Motors Co. plant in Delaware that was to be used for building a new line of plug-in hybrid Fiskers until the company ran out of cash.

"HT is committed to building upon the Fisker legacy and presence in the United States as a foundation for the design and manufacture of advanced hybrid electric vehicles," said Caroline Langdale, a spokeswoman for HT. "We will work to realize the full potential these fantastic cars offer in helping to remake the auto industry for the 21st Century." Ms. Langdale declined to elaborate on details about Hybrid Technology, including where the company is based. Reuters reported in October that Hong Kong billionaire, Richard Li, was the winning bidder.

The auction could mean new life for the startup auto maker and its Fisker Karma plug-in sedan, which would compete with Tesla Motors Inc.'s Model S electric sedan and a growing flock of plug-in models from more established luxury brands.

Fisker hasn't produced a car in more than a year and was plagued by quality problems in the first vehicles it launched in 2011.

Fisker became a symbol of the conflict between the Obama administration and some Republican lawmakers critical of taxpayer-funded investments in battery and electric vehicle companies. Other companies that received loans from the Advanced Technology Vehicles Manufacturing program include Ford Motor Co., Nissan Motor Co., Tesla Motors and Vehicle Production Group, a maker of natural gas-fueled, wheelchair-accessible vans.

VPG's $50 million loan also defaulted when the company went under and the DOE sold its loan for $3 million.

Fisker Automotive couldn't be reached for comment. The phone at its Anaheim, Calif., headquarters has been disconnected.
 

·
Registered
Joined
·
31 Posts
The official Press Release:

Fisker Automotive Announces Agreement for Asset Sale to Hybrid Tech Holdings

ANAHEIM HILLS, Calif., Nov. 22, 2013 /PRNewswire/ -- Fisker Automotive, Inc. and Fisker Automotive Holdings, Inc. (collectively, Fisker Automotive) announced today that they have entered into an asset purchase agreement with Hybrid Tech Holdings, LLC (Hybrid) for the sale of substantially all of its assets.

Hybrid is the lender under an approximately $170 million loan secured by first liens on substantially all of Fisker Automotive's assets. Hybrid's parent, Hybrid Technology, LLC (Hybrid Technology), purchased the loan from the U.S. Department of Energy (DoE) after DoE conducted a robust marketing process and auction.

To facilitate the sale process and provide for orderly distributions to creditors, Fisker Automotive has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code. Hybrid Technology has committed up to approximately $8 million in debtor-in-possession (DIP) financing to fund the sale and Chapter 11 process.

"After having evaluated and pursued all other alternatives, we believe the sale to Hybrid and the related Chapter 11 process is the best alternative for maximizing Fisker Automotive's value for the benefit of all stakeholders," said Marc Beilinson, Fisker Automotive's Chief Restructuring Officer. "We believe that the Fisker Automotive technology and product development capability will remain a guiding force in the evolution of the automotive industry under Hybrid's leadership."
 

·
EX:Shadow/Canyon #324
Joined
·
1,217 Posts
Nice timing for a change. They filed on a Friday that happens to be the 50th anniversary of the JFK assasination and before a holiday weekend so that the news gets buried, Congress is on recess and they have their hands full with the ACA and Filibuster rule changes, so they will not have enough attention span to make hay out of this, and it is far enough away from the 2014 elections that no one is going to remember it next year.

Very Un-Fisker like timing. Someone must be actually thinking things through over there. Unless Mr. Li is feeling generous, this is going to wipe out all the equity holders and the vendors will probably have to take a pretty major haircut, but if they really start production back up again, it's goodish news.
The timing of the announcement was most likely controlled by the DOE, not Fisker.
 

·
Registered
Joined
·
37 Posts
cwsnhri

When can those of us who invested in the company (Fisker) write off that investment, now that we have a BK with a case number?
 

·
Registered
Joined
·
535 Posts
When can those of us who invested in the company (Fisker) write off that investment, now that we have a BK with a case number?
I think there's an accountant or 2 here that could tell you for sure, but my guess is you can't write it off until the case is concluded, even though there's nearly 100% certainty that equity holders will be wiped out.
 

·
Registered
Joined
·
535 Posts
Well, not quite...
I'm looking at the petition right now, and what is says is:
"Estimated Assets - $100M-$500M" (box checked).
"Estimated Liabilities - $500M-$1B" (box checked).

So the story is a little generous in pegging the assets at the absolute top of the massive range. The real total is likely much closer to $100M: The inventory of completed cars (what I refer to as the "valhalla cars" hidden away in some European port) would be worth about $100M, and that's probably most of the tangible assets.

Another really interesting thing in the claim: BMW is in the #1 spot as a creditor - $74M!! It is a disputed amount, but makes me wonder what in the world was BMW's role in Fisker? And with a claim that big (to give some context, #2 is a claim for $11M), could BMW itself have some interest in backing production? With a claim that large, almost as big as the DOE loan, I'm very surprised BMW didn't take a run at buying the DoE loan itself. Henrik did design the iconic z8, and the Fisker would have looked good with a rondel (and the backing of a gorilla in the automotive industry).
 

·
Premium Member
Joined
·
4,659 Posts
When can those of us who invested in the company (Fisker) write off that investment, now that we have a BK with a case number?
Possibly, but not necessarily. It all depends on how HT will reorganize FA. They have the right to reject contracts and wipe out unsecured claims, but that does not mean they have to.
 

·
Premium Member
Joined
·
4,659 Posts
Another really interesting thing in the claim: BMW is in the #1 spot as a creditor - $74M!! It is a disputed amount, but makes me wonder what in the world was BMW's role in Fisker? And with a claim that big (to give some context, #2 is a claim for $11M), could BMW itself have some interest in backing production? With a claim that large, almost as big as the DOE loan, I'm very surprised BMW didn't take a run at buying the DoE loan itself. Henrik did design the iconic z8, and the Fisker would have looked good with a rondel (and the backing of a gorilla in the automotive industry).
I am speculating here, but I think BMW's claim may arise from the minimum number of engines FA committed to buy for the Atlantic production from BMW, or from tooling or R&D that BMW has already done to get ready for that production. Even if it is a valid claim, as long as it is unsecured, HT can reject it as part of the BK process.
 

·
Premium Member
Joined
·
4,659 Posts
Nice timing for a change. They filed on a Friday that happens to be the 50th anniversary of the JFK assasination and before a holiday weekend so that the news gets buried, Congress is on recess and they have their hands full with the ACA and Filibuster rule changes, so they will not have enough attention span to make hay out of this, and it is far enough away from the 2014 elections that no one is going to remember it next year.

Very Un-Fisker like timing. Someone must be actually thinking things through over there. Unless Mr. Li is feeling generous, this is going to wipe out all the equity holders and the vendors will probably have to take a pretty major haircut, but if they really start production back up again, it's goodish news.
The timing of the announcement was most likely controlled by the DOE, not Fisker.
Probably, FA never missed an opportunity to miss an opportunity. Whoever called the shots on the timing has my respect.
 

·
Premium Member
Joined
·
4,659 Posts
Merged Multiple Fisker BK Threads into this thread

As news of Fisker's Chapter 11 filing started dribbling out, multiple forum members posted multiple threads with essentially the same information. To make it easier to access information about this news, I merged the multiple threads into this one.

Please post future FA Bankruptcy posts to this thread to keep them easily accessible.

Thank you,

Your humble moderator.
 
1 - 20 of 64 Posts
Top