Fisker Automotive Holdings Inc. received court approval to borrow $4.98 million from Wanxiang Group, the Chinese auto-parts maker that won an auction for the bankrupt maker of luxury plug-in cars.
U.S. Bankruptcy Judge Brendan Linehan Shannon approved the interim financing at a hearing today in Wilmington, Delaware. Fisker will return to court March 21 to seek approval of the rest of a $10.5 million debtor-in-possession loan.
The new financing replaces an $8.1 million loan from Hybrid Technology LLC. Hybrid, which also bid for Anaheim, California-based Fisker, terminated the financing agreement and declared all principal and accrued interest due after Wanxiang won court approval to buy the automaker’s assets.
Fisker filed for court protection Nov. 22 with a plan to sell its assets to Hybrid for about $25 million. Hybrid held a U.S. government loan that Fisker had defaulted on. Unsecured creditors objected to the price and helped bring Wanxiang into the case in December.
Wanxiang topped Hybrid after 19 rounds of bidding with an offer that included $126.2 million in cash, plus equity and $8 million in assumed liabilities. The purchase requires U.S. antitrust clearance.
Fisker listed assets of as much as $500 million and debt of as much as $1 billion in its Chapter 11 petition.
The case is In re Fisker Automotive Holdings Inc., 13-bk-13087, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Dawn McCarty in U.S. Bankruptcy Court in Wilmington, Delaware, at email@example.com
To contact the editor responsible for this story: Andrew Dunn at firstname.lastname@example.org