DOE to auction off Fisker loan

Got a plan to bring Fisker back to life? You’ve got a couple of weeks to put an offer together. The DOE has announced that it plans to conduct an auction for Fisker’s loan, which has a $168 million unpaid balance, on October 11. The deadline for submitting initial bids is October 7.

“After exhausting any realistic possibility for a sale that might have protected our entire investment, the Department announced today that we are auctioning the remainder of Fisker’s loan obligation, offering the best possible recovery for the taxpayer,” said Peter Davidson, director of the DOE’s Loan Program Office. “Consistent with the intent and statutory purpose of the Advanced Technology Vehicles Manufacturing program, the Department will require all bids to include a commitment and business plan that promotes domestic manufacturing capabilities and related engineering for advanced technology vehicles here in the United States.”

There have been several high-profile suitors for the startup automaker since it defaulted on its loan and hired a bankruptcy consultant in April. Both Bob Lutz and Henrik Fisker have teamed up with Asian money men to submit offers. Some would-be buyers have offered the government as little as 15 cents on the dollar, according to sources cited by the Wall Street Journal. Recently, a pair of German investors submitted a formal offer of $25 million.

A few weeks ago, the government auctioned off what was left of Vehicle Production Group, a maker of natural-gas powered vans. VPG’s nonperforming $50-million loan was sold to AM General LLC for $3 million.

 

Sources: Wall Street Journal, Green Car Reports