Karma News: Bankruptcy Judge Announces That Fisker's Assets Head Back To Auction

[William Maley]

Nothing ever seems to come easy for Fisker. Back in November, we reported that Hybrid Tech Holdings, LLC, a company founded by Hong Kong investor Richard Li, had purchased Fisker's assets from the Department of Energy for $25 million. It seemed that this chapter in Fisker's turbulent life had come to close. But this past week, the chapter was ripped opened.

In a hearing last week, U.S. Bankruptcy Judge Kevin Gross rejected the planned sale and instead has favored putting the assets back up on the auction block in February. This opens the door for Wanxiang Group, the Chinese auto parts supplier who owns A123 Systems, to bid on Fisker's assets as well.

"I think that, for me, at the end of the case, whether or not the price paid was fair or reasonable, I think an auction will provide that mechanism. That is the most favored method," said Gross at the hearing.

In a statement, Hybrid Tech Holdings said they were "deeply disappointed" with the ruling.

"Despite the court's decision, Hybrid will participate in the auction, as we still feel Hybrid represents the most competitive and viable bid for Fisker's future," the company said.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[David]

Interesting, I wonder how much the judge was paid under the table to throw this back to auction. Probably will go for even less and the tax payers are screwed again by the idiots in DC.

[SoCalCTS]

GM should bid on this. For this super cheap price they basically could pick up technology and platforms that it would cost them 10 or 20 times as much to develop in house.

[David]

If GM did bid and win, I am sure a certain retired GM exec would love that to support his Corvette transplant powertrain project.

[Drew Dowdell]

I'm not so sure GM needs the Karma platform, but the Atlantic platform could be very compelling.