Henrik Fisker Lines Up To Buy Back His Namesake, Fisker Automotive

4 years ago by Jay Cole 6

Henrik Fisker Now Waits To See If He Is Returned To The Company He Founded

Henrik Fisker Now Waits To See If He Is Returned To The Company He Founded

A few days ago it was revealed that Bob Lutz, former vice-chairman of General Motors, and now part-owner of VL Automotive was looking to acquire what remains of Fisker Automotive, along with Chinese part giant Wanxiang for around $20 million dollars; that is, after the company gets a Chapter 11 rinse through bankruptcy anyway.

Alongside this bid, was news that Hong Kong billionaire Richard Li was also interested in raking in the automaker; and now it appears he too has a high profile front man for the acquisition.

Enter Henrik Fisker.

Apparently Just Selling Watches Was Not Enough Excitement For Mr. Fisker The Past Couple Months

Apparently Just Selling Watches Was Not Enough Excitement For Mr. Fisker The Past Couple Months

Only two months removed from stepping down as chairman of the company he founded six years ago after high profile disagreements with Fisker Automotive’s Board of Directors, Henrik now looks to re-insert himself into the company via Li’s investment interest in the company.

Unlike the Lutz/Wanxiang offer for Fisker that would see the automaker shake its debt responsibilities through a prearranged bankruptcy (such as the $171 million it still owes the DoE), the investment group with Mr. Fisker and Mr. Li seeks to buy out the government’s debt position for a set dollar amount, then leave Fisker ‘as is’ without a trip to bankruptcy court.

According to sources, the DoE is actively consider this option and is trying to figure out the legal ramifications.

Could The Fisker Atlantic Still See The Light Of Day?

Could The Fisker Atlantic Still See The Light Of Day?

Not only would the brand Fisker remain, but other creditors, of whom the company still owes money to, may yet recoup some outstanding invoices…such as their website provider, and Fisker HQ’s landlord.

As reported by Reuters, there was no confirmation of exactly what role Henrik would play in this offer.

Former Fisker CEO Tom LaSorda, has said he would like to see Fisker Automotive not enter bankruptcy, and that the company would be yet even more valuable to potential suitors without its DoE obligations

If it goes the other way, you get nothing,” LaSorda said in an interview on Thursday to Reuters, saying that buying the U.S. loan would be a “very smart, strategic move.”

The Li group is apparently offering about 17 cents on the dollar for the Department of Energy loan, or between $25 million and $30 million; a $5 to $10 million dollar premium over the VL Automotive/Lutz proposition that would see the company go through a prearranged bankruptcy, not unlike the process for General Motors and Chrysler previously.

Reuters

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6 responses to "Henrik Fisker Lines Up To Buy Back His Namesake, Fisker Automotive"

  1. Bill Howland says:

    I would like to see a break down as to exactly how Fisker managed to BLOW so much coin in such a short period of time, especially since the manufacture of the Karma was contracted out to Finland

    1. Dan Frederiksen says:

      Me too but what’s far more relevant for its future is whether the production is viable or similar cash burner. I see no evidence whatsoever that FA has anything of any worth, that if you buy it you will just end up wasting money at the same rate they did.
      It is an extremely overweight and inefficient car that wastes in every aspect and that no doubt translates to poor viability. When you are stupid enough to build a 2.4ton eco car the you pay for that stupidity in production and material cost as well as maintenance and warranty.
      Why would you want an inherently wasteful company, what could you do with it..

  2. Nixon says:

    It starts with losing $125 million because of A123 going bankrupt while still owing them $140 million. Add to that $33 million in claims for 338 Karma’s destroyed by Sandy that the insurance company is refusing to pay for. On top of that, add up the cost of having the company be idle since last summer with no battery packs available from A123. And then tack on the cost of buying a factory and all the R&D sunk into developing the Atlantic, that still hasn’t gone into production.

    All the sudden you realize it has nothing to do with their actual cost of building Karma’s in Finland and selling them in the United States.

    1. Richard Noe says:

      Fisker’s fatal mistakes were rushing the Karma to market without proper testing, and diverting too much of their attention and resources to trying to make the mass-produced Atlantic, which was way out of their reach. If they had concentrated on perfecting the Karma, and adding the gorgeous Sunset hardtop convertible to their lineup (as well as the shooting brake version, whose name escapes me ATM), they may well have been able to survive as a high-end, limited production coachbuilder.

      1. Dan Frederiksen says:

        No no, the mistake was the 2.4ton. Everything follows from that.

  3. Bill Howland says:

    I take a middle of the road approach here.. I’ve test driven the car twice, and it is a relatively nice car. Its not the most efficient thing thats true, but you can’t really say a model “s” perfomance is efficient either. They are both about the same weight.

    For people who buy cars like this, looks are more important than absolute efficiency, and this car has looks in spades.. My point is proven by all the young celebrities who had to have one.