A U.S. Department of Energy (DoE) sponsored auction of the remaining assets of Fisker Automotive was reportedly finished yesterday, and the winner preliminarily appears like it will be Hong Kong tycoon, Richard Li.
The dollar amount reportedly to be paid on the deal which was not yet closed has not been disclosed and further details are being ironed out according to Reuters.
In order to enter the auction, prospective bidders had to bring at least $30 million to the table and counter offers intended to drive up a final sale price was allowed.
Fisker owes the DoE – and thus U.S. taxpayers – $168 million and is not able to repay.
A stipulation of the winning bid set by the government is a viable business plan for domestic manufacture of “green cars” must be shown.
The son of Asia’s richest man, Richard Li – assuming the deal is finalized – would need to restructure Fisker despite it being tied to obligations from its federal loan.
Off-the-record sources described to have insider knowledge said this restructuring would be an expensive and difficult process.
Others attempting to buy Fisker included the investment group Fritz Nols AG of Germany, a team that included Chinese auto parts supplier – and owner now of A123 Systems – Wanxiang and Bob Lutz, former General Motors executive.
The auction was decided upon as the best damage control by the DoE after all other options were said to have been exhausted.