Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Fisker Automotive Bankruptcy Case Progressing
Author: Joel R. Glucksman
Date: January 17, 2014
Key Contacts
Back
Fisker Automotive recently filed for bankruptcy, and the bankruptcy case is headed for an important hearing during the second week of January. According to USA Today, a judge will decide whether the company’s assets will be purchased by Hybrid Technologies or opened to an auction.
The company, which is seeking protection under bankruptcy law, is a California hybrid carmaker founded by designer Henrik Fisker. This is not the first time the business has faced controversy, as it received a large $529 million loan from the U.S. Energy Department in the past that caused an uproar, as it was meant to help promote fuel-efficient cars, but ended up being used to attract private funding.
With public and private funding, the company was able to raise more than $1.4 billion. But, high spending along with quality and engineering mistakes led to the draining of funds, and delayed the launch of its vehicle, the Karma. Fisker officially stopped production when it was unable to obtain batteries to complete vehicles.
One company in play to acquire Fisker’s assets is the Wanxiang Group – China’s top auto parts company. The company made an initial $24.725 million bid. According to Reuters, Fisker is opposed to selling to Wanxiang, because it claims the Chinese company played a role in its failure.
“Wanxiang now seeks to profit from a bankruptcy that it helped cause,” Fisker said in a filing.
However, the creditor’s committee doesn’t agree, as it feels the Wanxiang bid proposal is the best option. In fact, the committee even asked the bankruptcy court to allow it to file a lawsuit against former Fisker director David Manion for pushing the sale to an affiliate of Richard Li.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.