Sorry... too late, this is posted elseware already.
Wanxiang Group Has Won the Bidding
Wanxiang Group has won with a bid of more than $149 million.
http://www.reuters.com/article/2014/02/15/us-fisker-auction-idUSBREA1E04B20140215
(Reuters) - Wanxiang Group, China's largest auto parts company, won a bankruptcy auction for the assets of Fisker Automotive, the defunct manufacturer of the Karma plug-in hybrid sports car, Fisker said on Friday.
Wanxiang's bid has been valued at about $149.2 million, representing $126.2 million of cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang, Fisker said in a statement.
The sale will be presented to the U.S. Bankruptcy Court in Wilmington, Delaware, on Tuesday for approval by Judge Kevin Gross.
Wanxiang outbid an affiliate of Richard Li, a Hong Kong billionaire and Fisker investor, said two sources who were briefed on the auction.
The auction began on Wednesday and ended on Friday. Li had presented an initial bid of around $55 million, the sources said. There were 19 rounds of bidding, according to Fisker.
California-based Fisker was the brainchild of Henrik Fisker, a former BMW designer. The company's elegant cars were hobbled by cost overruns and tech glitches and in 2012 it stopped production to conserve cash.
Wanxiang has been building a U.S. manufacturing presence and last year the U.S. government cleared it to acquire the bankrupt assets of A123 Systems Inc, which made Fisker batteries.
Both Fisker and A123 were funded in part with loans from the U.S. government that were meant to foster clean-fuel technologies. Wanxiang outbid Johnson Controls Inc for A123, and the Chinese company also overcame an active lobbying effort to block it from obtaining technology developed with U.S. taxpayer money.
Fisker filed for bankruptcy in November with a plan to sell its assets to Li in return for Li forgiving a portion of the U.S. government loan he had bought. Fisker creditors opposed that plan, which would have left them with almost nothing, and instead teamed up with Wanxiang and pushed for an auction.
http://www.reuters.com/article/2014/02/15/us-fisker-auction-idUSBREA1E04B20140215
(Reuters) - Wanxiang Group, China's largest auto parts company, won a bankruptcy auction for the assets of Fisker Automotive, the defunct manufacturer of the Karma plug-in hybrid sports car, Fisker said on Friday.
Wanxiang's bid has been valued at about $149.2 million, representing $126.2 million of cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang, Fisker said in a statement.
The sale will be presented to the U.S. Bankruptcy Court in Wilmington, Delaware, on Tuesday for approval by Judge Kevin Gross.
Wanxiang outbid an affiliate of Richard Li, a Hong Kong billionaire and Fisker investor, said two sources who were briefed on the auction.
The auction began on Wednesday and ended on Friday. Li had presented an initial bid of around $55 million, the sources said. There were 19 rounds of bidding, according to Fisker.
California-based Fisker was the brainchild of Henrik Fisker, a former BMW designer. The company's elegant cars were hobbled by cost overruns and tech glitches and in 2012 it stopped production to conserve cash.
Wanxiang has been building a U.S. manufacturing presence and last year the U.S. government cleared it to acquire the bankrupt assets of A123 Systems Inc, which made Fisker batteries.
Both Fisker and A123 were funded in part with loans from the U.S. government that were meant to foster clean-fuel technologies. Wanxiang outbid Johnson Controls Inc for A123, and the Chinese company also overcame an active lobbying effort to block it from obtaining technology developed with U.S. taxpayer money.
Fisker filed for bankruptcy in November with a plan to sell its assets to Li in return for Li forgiving a portion of the U.S. government loan he had bought. Fisker creditors opposed that plan, which would have left them with almost nothing, and instead teamed up with Wanxiang and pushed for an auction.
1 - 14 of 14 Posts
With the bid finally over, trying to figure out what is the good, the bad and the Ugly about the outcome. With Wanxiang apparently winning the bid, at 90 Million greater than Li's offer I tried to find more about the company. Warranty wishes are still up in the air, but the on-going investment the technology and improvements is just as key -- not to mention the supply of parts to support the inventory.
Here is a simple pdf I found that tells more about Wanxiang than I was aware. There is Good... I found little Bad or Ugly. Thought I would share.... I was amazed at how advanced Wanxiang was, not to mention, how very advanced technology has come around the world.
Worth the time to take a look. I think over-all we owners are in the best hands possible.
http://www.wanxiang.com/Wanxiang%20EV_general.pdf
Here is a simple pdf I found that tells more about Wanxiang than I was aware. There is Good... I found little Bad or Ugly. Thought I would share.... I was amazed at how advanced Wanxiang was, not to mention, how very advanced technology has come around the world.
Worth the time to take a look. I think over-all we owners are in the best hands possible.
http://www.wanxiang.com/Wanxiang%20EV_general.pdf
Interesting information. Thanks for sharing.
thank you for sharing ..this explain why they paid top dollar for a123 and fiskerWith the bid finally over, trying to figure out what is the good, the bad and the Ugly about the outcome. With Wanxiang apparently winning the bid, at 90 Million greater than Li's offer I tried to find more about the company. Warranty wishes are still up in the air, but the on-going investment the technology and improvements is just as key -- not to mention the supply of parts to support the inventory.
Here is a simple pdf I found that tells more about Wanxiang than I was aware. There is Good... I found little Bad or Ugly. Thought I would share.... I was amazed at how advanced Wanxiang was, not to mention, how very advanced technology has come around the world.
Worth the time to take a look. I think over-all we owners are in the best hands possible.
http://www.wanxiang.com/Wanxiang EV_general.pdf
Bankruptcy Judge Approves Sale Of Fisker Automotive to China’s Wanxiang
It is now official!!
Delaware Bankruptcy Judge Approves Sale Of Fisker Automotive to China’s Wanxiang
By Phillip Thomas on February 18, 2014
Today Delaware, U.S. Bankruptcy Judge Kevin Gross approved of the sale to Wanxiang. He stated that the auction “shows that a fair process is a good thing.”
Last week, Reuters reported that Wanxiang, a Chinese parts supplier, had won the bankruptcy auction for Fisker Automotive. The bid was valued around $149.2 million. The deal comes to close after a bidding way between Wanxiang and Hybrid LLC — a group who includes Richard Li, a Fisker investor and Hong Kong billionaire. In November, Fisker asked for Hybrid Technology LLC to purchase the bankrupt company for $25 million, but creditors objected the deal in November and brought Wanxiang into the case in December.
The sale came after a 19 round biding war between Wanxiang and Hybrid Technology LLC, and includes the shuttered General Motors assembly plant that Fisker purchased in 2010. Bloomberg reports, “[the] offer includes $126.2 million in cash, plus equity and $8 million in assumed liabilities.”
Wanxiang also bought A123 Systems Inc. last year after its bankruptcy for $256.6 million. A123 produced the Fisker batteries, which Henrick Fisker attributed to the failure of Fisker after A123 went through bankruptcy in October of 2012, and exiting in March of 2013.
It is now official!!
Delaware Bankruptcy Judge Approves Sale Of Fisker Automotive to China’s Wanxiang
By Phillip Thomas on February 18, 2014
Today Delaware, U.S. Bankruptcy Judge Kevin Gross approved of the sale to Wanxiang. He stated that the auction “shows that a fair process is a good thing.”
Last week, Reuters reported that Wanxiang, a Chinese parts supplier, had won the bankruptcy auction for Fisker Automotive. The bid was valued around $149.2 million. The deal comes to close after a bidding way between Wanxiang and Hybrid LLC — a group who includes Richard Li, a Fisker investor and Hong Kong billionaire. In November, Fisker asked for Hybrid Technology LLC to purchase the bankrupt company for $25 million, but creditors objected the deal in November and brought Wanxiang into the case in December.
The sale came after a 19 round biding war between Wanxiang and Hybrid Technology LLC, and includes the shuttered General Motors assembly plant that Fisker purchased in 2010. Bloomberg reports, “[the] offer includes $126.2 million in cash, plus equity and $8 million in assumed liabilities.”
Wanxiang also bought A123 Systems Inc. last year after its bankruptcy for $256.6 million. A123 produced the Fisker batteries, which Henrick Fisker attributed to the failure of Fisker after A123 went through bankruptcy in October of 2012, and exiting in March of 2013.
I have access to Pacer (site to see all documents in case) and as of 1:12 pm 2-18-14 PST - no Order has been filed approving the sale.
More twists and turns than a hundred years war...
Checkout this article. It seems Richard Li and his Fisker board henchman David Manion are claiming that by bidding up then "losing" to Wanxiang, they have made 6x ($125 million profit) from Hybrid's purchase of the senior secured debt from DOE. Does Li really plan to keep a 3-month $125 million profit for himself and leave the other creditors, shareholders, and taxpayers with zilch, despite the judges attempt to force some recovery through bankruptcy auction?
http://online.wsj.com/article/BT-CO-20140218-707726.html
No wonder everybody's sick of the billionaires running this world!
Checkout this article. It seems Richard Li and his Fisker board henchman David Manion are claiming that by bidding up then "losing" to Wanxiang, they have made 6x ($125 million profit) from Hybrid's purchase of the senior secured debt from DOE. Does Li really plan to keep a 3-month $125 million profit for himself and leave the other creditors, shareholders, and taxpayers with zilch, despite the judges attempt to force some recovery through bankruptcy auction?
http://online.wsj.com/article/BT-CO-20140218-707726.html
No wonder everybody's sick of the billionaires running this world!
i don't want to to speak up for Billionaires - but the position of secured creditor is sacrosanct in our legal and lending laws. And you probably wouldn't want it any other way - i doubt they get the whole $125m - but it is hard not seeing them getting at least the cap of their credit bid -$50m (and potentially a lot more) - i think and probably some equity. Still not a bad out come - no matter what. And they are the DIP financier which is even more sacrosanct.Checkout this article. It seems Richard Li and his Fisker board henchman David Manion are claiming that by bidding up then "losing" to Wanxiang, they have made 6x ($125 million profit) from Hybrid's purchase of the senior secured debt from DOE. Does Li really plan to keep a 3-month $125 million profit for himself and leave the other creditors, shareholders, and taxpayers with zilch, despite the judges attempt to force some recovery through bankruptcy auction?
http://online.wsj.com/article/BT-CO-20140218-707726.html
No wonder everybody's sick of the billionaires running this world!
i think this just shows the government shouldn't be in the lending game - the loan was badly written, executed, and when things went sideways - and half decent equity firm would have renegoatiated the loan trading it for equity, bringing in new management, and maybe a JV, diluting previous equity to pretty much nothing (which is what shareholder deserve) - if the government was smart they basically could have done this exact same deal without all the BS.
That's a big IF!- if the government was smart they basically could have done this exact same deal without all the BS.
I hope by shareholder "deserving" wipeout you really mean supervising board members, of which Richard Li was one. Small shareholders and creditors "deserved" this mess as much as lowly citizens "deserve" the blowback from plutocratic governments run amok. Only billionaire board members have the power to reform bad management or buy out the senior secured debt when things go sour.
So clever Richard Li recoups his investment in Fisker and the rest of the A/B/C/D/E/E1/F/etc. shareholders get...zilch. Maybe he is smarter than the Hong Kong/Chinese press give him credit for.
shareholders are shareholders - when you buy a stock you are buying apiece of the company with all of the attendant risk. In a BK the first to get wiped out are the shareholders - you cant have the reward and not take the risk. If one cannot afford to take the loss - buy bonds, or don't buy any stock at all. what did small shareholders think they were buying - they were buying stock in a start up manufacturing auto company - at a time when half of the US auto industry was flirting with BK, at a time when there had not been ONE new auto manufacturer in the US, period, and in a new market that was untested, for a six figure car that would compete against the best auto manufacturers in the world (audi,MB, Porsche, BMW) founded by a guy that had never really run or founded a company of size!! I got the Private placement prospectus like probably many of you - i loved the car but I would never buy the stock - not then at least. SO no- i don't feel any sadness for the shareholders no matter how big or small they are. Creditors - well yes I do feel for them and the BK process is based off of trying to be relatively fair, but most of these guys will see pennies on the dollar back, maybe a bit more - but they are business taking business risks - they are not children in the playground that can cry and go back to the protective embrace of mama - we live in a regulated market/capitalist market - failure is an integral part of the process - but lets see what rises from the ashes.I hope by shareholder "deserving" wipeout you really mean supervising board members, of which Richard Li was one. Small shareholders and creditors "deserved" this mess as much as lowly citizens "deserve" the blowback from plutocratic governments run amok. Only billionaire board members have the power to reform bad management or buy out the senior secured debt when things go sour.
Great information, it appears that they are doing more than ANY U.S. based company in the field of EV technology.With the bid finally over, trying to figure out what is the good, the bad and the Ugly about the outcome.
Worth the time to take a look. I think over-all we owners are in the best hands possible.
http://www.wanxiang.com/Wanxiang EV_general.pdf
1 - 14 of 14 Posts
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