Sources say Hong Kong tycoon buys Fisker loan at auction

An investor group led by Hong Kong tycoon Richard Li seems to have won the bidding for Fisker’s DOE loan, Reuters reported, citing a confidential source. The DOE plans to publicly announce the winner once the sale was closed. Fisker owes the DOE $168 million, but bids at Friday’s auction started at $30 million.

Buying the loan would allow Li, the son of Asia’s richest man and an early Fisker investor, to avoid a bankruptcy filing, and to restructure Fisker unencumbered by the obligations of the DOE funds, according to Reuters. However, the DOE did require bidders to include a plan to promote the manufacturing and engineering of green cars in the US.

The feds resorted to the auction “after exhausting any realistic possibility for a sale” that would allow the DOE to recoup its investment in full.

 

Source: Reuters, Green Car Reports