Fisker Files For Bankruptcy, Assets Sold To Hybrid Technology

Electric car startup Fisker Automotive has finally filed for Chapter 11 bankruptcy, more than one year since it last built one its $103,000 Karma extended-range electric sedans. It means Fisker will fail to pay its remaining portion of a $192 million loan awarded to it back in 2010 under the government’s advanced-technology vehicle manufacturing program, as well as money owed to suppliers and other creditors.

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The government isn’t completely at a loss, as a company by the name of Hybrid Technology, reportedly linked to Hong Kong billionaire Richard Li, paid $25 million for the loan during a public auction, paving the way for Hybrid Technology to acquire Fisker’s remaining assets. In total, the government will lose about $139 million from its involvement with Fisker.

“After having evaluated and pursued all other alternatives, we believe the sale [of Fisker] to Hybrid and the related Chapter 11 process is the best alternative for maximizing Fisker Automotive’s value for the benefit of all stakeholders,” Fisker chief restructuring officer Marc Beilinson said in a statement. “The Fisker Automotive technology and product development capability will remain a guiding force in the evolution of the automotive industry under Hybrid’s leadership.”

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Hybrid Technology is still exploring its options for Fisker and plans to make a decision on its fate at a later date. It will provide $8 million in debtor-in-possession financing in the meantime.

Fisker listed assets of as much as $500 million and debt of as much as $1 billion in its Chapter 11 petition filed in a U.S. bankruptcy court, according to Bloomberg. Among the assets are Fisker’s brand, technology and plant in Wilmington, Delaware.

Stay tuned for an update.

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