Wanxiang America wins auction for Fisker with bid valued at $149.2M; Bankruptcy Court approval expected on Tuesday
15 February 2014
After 19 rounds of bidding, Wanxiang America Corporation (Wanxiang) has been selected as the highest and best bidder in a competitive auction for Fisker Automotive, completed on Friday. Wanxiang’s winning bid is valued at approximately $149.2 million, representing $126.2 million of cash, $8 million of assumed liabilities, and a contribution of common equity in an affiliate designated by Wanxiang to acquire the assets of Fisker Automotive.
The transaction includes the acquisition of Fisker’s Wilmington, Delaware plant. Wanxiang’s successful bid remains subject to Bankruptcy Court approval.
We conducted a highly spirited auction resulting in an increase in value of approximately $90 million as compared to the opening bid of the auction.—Marc Beilinson, Fisker Automotive’s Chief Restructuring Officer
Wanxiang’s successful bid will be presented for approval by the United States Bankruptcy Court for the District of Delaware in Wilmington on Tuesday, 18 February 2014. The transaction is expected to close promptly thereafter.
In January 2013, Wanxiang acquired substantially all of the non-government business assets of bankrupt A123 Systems, Inc. (Earlier post.) A123 had been the battery supplier for Fisker.
Fisker is advised by Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as counsel, Evercore as investment banker, and Beilinson Advisory Group as restructuring advisor.
Wanxiang is advised by Sidley Austin LLP and Young Conaway Stargatt & Taylor LLP as counsel and M6 Business Advisors LLC as restructuring advisor.
Goodbye A123 systems and Fisker. They never delivered on their promises and thus got punished by the marketplace.
Posted by: Joe | 15 February 2014 at 11:15 AM
Its not exactly the end when the company is taken over by a company with very deep pockets located in the most dynamic region on earth.
Posted by: Davemart | 15 February 2014 at 11:28 AM
When all the IP runs off to the opposite side of the earth, into the hands of a competitor known for ruthlessness, it's not good.
We can hope that Fisker's IP isn't worth very much compared to Tesla.
Posted by: Engineer-Poet | 15 February 2014 at 07:33 PM
A lower cost, Fisker PHEV, assembled with made in China parts and components could temporarily fix range problems associated with current pure EVs.
The ICE range extender could (as an option) be replaced with 3-3-3 batteries by 2016/2018 or so.
Posted by: HarveyD | 16 February 2014 at 08:08 AM
A123 cells are not gone at all, my company still receives pallet loads of M1B cells.
Wanxiang is a good American company, don't fool yourself!
Posted by: TheOne | 16 February 2014 at 04:44 PM
Fisker is/was all about style. As a functional car it was a dud--poor ergonomics, pitiful mileage, unreliable. Fisker never had either the R&D or management chops that Tesla has.
Posted by: Nick Lyons | 17 February 2014 at 10:33 AM
The situation over is far cry from what the media make it out to be. Judge them with a population of 1.4b. But if you want them to be more like the US, shutting them out of the American market is not the best way to go.
Posted by: Peace Hugger | 17 February 2014 at 03:25 PM