Fisker’s Bankruptcy Plan ApprovedTuesday, July 29, 2014
The Chapter 11 plan for Costa Mesa-based Fisker Automotive Inc. got approval from the United States Bankruptcy Court for the District of Delaware.
Wanxiang America Corp. bought the luxury hybrid automaker in February for $149.2 million in a bankruptcy auction and said it would like to resume production of Fisker’s Karma sedan and a second-generation vehicle model.
Wanxiang, part of China-based auto parts company Wanxiang Group Corp., beat out Fisker lender Hybrid Tech Holdings LLC, which purchased the automaker’s $168 million Department of Energy loan last year for $25 million.
In April, Wanxiang signed “a global settlement term sheet” with Hybrid and the company’s “Unsecured Creditors’ Committee to distribute proceeds of the sale to the company’s creditors.”
“This fully consensual resolution could not have been reached without the diligent negotiations of the company, Hybrid and the committee,” Marc Beilinson, Wanxiang’s chief restructuring officer, said in a statement. “We are grateful for their commitment to achieving a fair outcome for everyone involved and facilitating the distribution of the proceeds in an efficient and timely manner.”