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VOL. 38 | NO. 2 | Friday, January 10, 2014
Bankruptcy judge rejects Hybrid plan for Fisker
WILMINGTON, Del. (AP) — A Delaware bankruptcy judge has ordered a competitive auction for the assets of Fisker Automotive, rejecting a proposal by a group led by Hong Kong billionaire Richard Li to assume control of the failed electric-vehicle manufacturer in a private sale.
The judge on Friday refused to accept Hybrid Technology LLC's plan to use $75 million it said is owed as Fisker's senior secured lender as a credit bid for Fisker's assets.
Chinese auto parts conglomerate Wanxiang Group Corp. offered a cash bid of $35.7 million as the starting point for a competitive auction. Wanxiang's proposal was contingent on the judge eliminating or restricting Hybrid's ability to use credit, instead of cash, for its offer.
The judge agreed with Fisker's official creditors committee to cap Hybrid's credit bid at $25 million.