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
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
Author: Bryce S. Robins
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
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.