A secured creditor’s bid for defunct hybrid-sports-car manufacturer Fisker Automotive Holdings Inc. must be limited to $25 million, the U.S. Bankruptcy Court for the District of Delaware has ruled. The court held that if it permitted the creditor, a company affiliated with Hong Kong billionaire Richard Li, to bid $75 million for substantially all of Fisker’s assets, it would chill, or possibly freeze, the bidding process.
Fisker, an Anaheim, Calif., company and one of the world’s first manufacturers of plug-in hybrid electric vehicles, filed for bankruptcy in November after several misfortunes impacted its business. The company had to issue a safety recall related to battery packs supplied by a third-party vendor and lost its lending facility provided through the U.S. Department of Energy, according to court documents. Another setback occurred in October 2012 when Fisker lost its entire European shipment of 338 cars at Port Newark, N.J., because of flooding caused by Hurricane Sandy.
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