Bankruptcy Court clears way for Fisker to pay back creditors

Bankruptcy Court clears way for Fisker to pay back creditors

Plug-in hybrid company went bankrupt in 2011, cost government more than $100 million.

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July 29, 2014

Costa Mesa, California – The United States Bankruptcy Court for the District of Delaware has confirmed the Chapter 11 restructuring plans of Fisker Automotive Liquidating Corp. and Fisker Automotive Holdings Liquidating Corp., allowing the defunct companies to distribute funds raised in selling the maker of plug-in electric hybrid cars.

The courts had already approved the sale of Fisker to Wanxiang Group Corp. for $149.2 million. The approval of the restructuring plan allows Fisker to effectively settle its accounts.

"This fully consensual resolution could not have been reached without the diligent negotiations of the company, Hybrid, and the committee," says Marc A. Beilinson, chief restructuring officer. "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."

Launched with great fanfare in 2009, Fisker’s Karma plug-in car was a luxury competitor to the Chevrolet Volt – a car with both a large battery and a gasoline engine. More distinctively styled than other green cars of the time, the company became better known as one of the failed companies to get federal loans.

Fisker borrowed $168 million from the U.S. Department of Energy under a program intended to spur green-technology manufacturing in the United States. But between a global economic downturn and financing problems, Fisker never went into high-production at the former Saturn plant in bought in Delaware. The government will recoup about $25 million of that loan.

Source: Fisker Automotive