Fisker Automotive Sold To A Group Lead By A Guy With A Lot Of Money
Last week the DoE auctioned off the remaining balance of its ATVM loan to Fisker Automotive, and while no firm details have been released by the government, Reuters reports an investor group led by a “Hong Kong business tycoon” Richard Li has placed the winning bid.
The government was still owed about $168 million dollars from Fisker. And considering that Fisker unable to even scrounge up enough scratch to pay their paperboy, the government decided to auction off the note.
The DoE set a minimum bid of $30 million on the auction that Mr. Li and his group won – although reports are that the group may have still paid less than what the government was seeking.
By buying out the note, this allows Fisker to avoid the bankruptcy process, but more importantly immediately frees them from the strict governance of the US government – like the requirement of US made cars.
Fisker founder, Henrik Fisker had actually worked in conjunction with Li’s group earlier in the year in a effort to regain control of his namesake company. The two parted ways over the summer however.
The winning bid submitted by Pacific Century Group beat out two other offers – one from German investment group Fritz Nols AG and another from Chinese auto parts giant Wanxiang, which was fronted by VL Automotive and VIA spokesperson, Bob Lutz.
What does this mean for Fisker?
While it is still hard to say for sure, it probably means the company is back in business. The rebirthing of the company from near bankruptcy will be no inexpensive thing, but Li certainly has the means to do so on his own if he chose.
According to Forbes, Li was the 26th richest man in Hong Kong, with a worth of over $1.3 billion in 2010. And if that isn’t enough, maybe he can ask his dad for a loan – Li Ka-shing is the richest man in Asia, with a net worth of about $30 billion.
So, who still wants a Fisker Atlantic after all?