Fisker Automotive, Inc. and Fisker Automotive Holdings, Inc. announced that a transaction to sell substantially all of their assets to an affiliate of Wanxiang America Corp. for about $150 million has closed.
The sale was ordered by U.S. Bankruptcy Court in Wilmington after Wanxiang and Hybrid Tech Holdings, both U.S. units of Chinese companies, expressed interest in buying the company that had filed for protection in Delaware.
Fisker burned through $1 billion in private equity. A federal loan to the company was suspended after it was determined that the company could not move forward with its plans to build a vehicle in Delaware.
New Castle County spokesman Antonio Prado confirmed that WX Delaware Real Estate Holding Company based in Elgin, Ill and , a unit of Wanxiang, purchased the former Fisker and GM plant in the Prices Corner area for $18 million as part of the agreement.
The county and state each received $270,000 in real estate transfer taxes from the transaction, Prado said. There was no immediate word on taxes to be paid to the county and the Red Clay School District.
The State of Delaware also made a $20 million loan to Fisker and was a creditor.
Wanxiang reported it is studying the plant for future uses and has experience in production of electric buses. Fisker offers a plug-in hybrid that uses a smaller engine as a back-up. Wanxiang has stated that it wants to resume production of the Fisker Karma luxury hybrid and develop the Fisker Atlantic, mid-sized sedan. The Atlantic had been slated for production in Delaware.
“The completion of this transaction represents a significant achievement and is a great result for all Fisker Automotive stakeholders,” said Marc A. Beilinson, Fisker Automotive’s chief restructuring officer. “This successful outcome would not have been possible without the productive support from Wanxiang, our creditors’ committee, and their advisors.”
Fisker Automotive was advised by Kirkland & Ellis LLP with Pachulski Stang Ziehl & Jones LLP serving as counsel. Wanxiang was advised by Sidley Austin LLP and Young Conaway Stargatt & Taylor LLP serving as counsel. Pachulski, Stang and Young Conaway, specialize in Chapter 11 cases and have offices in Wilmington.