Fisker Automotive Holdings Inc., the defunct maker of luxury plug-in cars, won bankruptcy court approval of a liquidation plan that will distribute proceeds from a $149.2 million asset sale.
Fisker, now known as FAH Liquidating Corp., sought creditor protection in November, blaming the bankruptcy of its battery supplier, safety recalls and shipments lost to superstorm Sandy.
In February, the company won court approval to sell its assets to China’s Wanxiang Group Corp. for an offer valued at $149.2 million, almost six times what it had sought when it filed for bankruptcy. Wanxiang previously bought the successor to the U.S. company that had supplied Fisker’s batteries.
Federal bankruptcy Judge Kevin Gross approved Fisker’s liquidation plan at a hearing Monday in Wilmington, Delaware. The plan received support from about 95 percent of all voting creditors by number and more than 99 percent by value.
“I am clearly going to approve the plan,” Gross said. “The voting results are clear that this is a very favored plan.”
A committee of unsecured creditors and Hybrid Tech Holdings LLC, which bought a U.S.-backed loan to Anaheim, California-based Fisker for $25 million before the bankruptcy, reached an agreement in April on dividing the sale proceeds, according to court papers.
Unsecured creditors, who said the sale included assets that couldn’t be used as collateral for Hybrid Tech’s loan, will split $20 million in cash, according to the settlement. They were owed $80 million to $100 million. Priority claim holders are to get an additional $8 million. Hybrid had sought everything Wanxiang agreed to pay for the assets.
“The results speak for themselves,” William Baldiga, an attorney for the committee, told the court.
The committee and Hybrid, controlled by Richard Li, the son of Hong Kong’s richest man, are the only stakeholders left in the case.
“This fully consensual resolution could not have been reached without the diligent negotiations of the company, Hybrid and the committee,” Marc A. Beilinson, Fisker’s chief restructuring officer, said in a statement.