Billionaire Richard Li will fare well when it comes to a settlement with Fisker Automotive. The state of Delaware is likely to recover little its $20 million loan. The Wall Street Journal reported that the Hong Kong tycoon could walk away with $90 million, after buying up the federal loan for the auto maker for $23 million.
Li and Chinese parts-maker Wanxiang engaged in spirited bidding for Fisker with Waxiang emerging as the victor. Wanxiang will pay off Li as part of the settlement. About $20 million is expected to go to all unsecured creditors, including the state, the Journal reported.
“The preliminary resolution of these claims between Hybrid Tech and the Unsecured Creditors Committee is another step in the bankruptcy process, but it is still too early to tell what recovery may be available to the Delaware Economic Development Authority and other creditors,” stated Kelly Bachman, spokesperson for Delaware Gov. Jack Markell. “DEDA will continue to work with other creditors in the bankruptcy process, but we are not expecting a substantial recovery of the state’s investment.”
Delaware’s best chance of recouping money will come if Wanxiang uses the former Fisker-GM plant for parts-making or for a Fisker automobile. That plant was acquired by Wanxiang as one of Fisker’s assets. The state is still in the mix, although its chances are diminished by its distance away from the auto supply chain in the Midwest and South.
