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
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
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.