A Delaware bankruptcy judge has finalized a Chapter 11 liquidation plan for Fisker Automotive.
On Monday, Judge Kevin Gross signed off on the plan which would split approximately $16.5 million among Fisker’s unsecured creditors.
At its peak, Fisker had secured more than half a billion dollars in federal loans and upward of a billion dollars in private investments including those who made investments in the company as well as those who put down a deposit for a vehicle.
Fisker’s new owners, Wanxiang America Corporation, paid just $150 million when it won the bid for the luxury car manufacturing company earlier this year.
According to Fisker attorney Ryan Preston Dahl, the liquidation plan was supported by the majority of creditors including the Delaware Economic Development Office.
“It’s clear to the court that the plan is feasible, that it’s fair and equitable,” said Judge Gross during the hearing.
DEDO Director Alan Levin said they do not yet know exactly how much the state will get back. The state of Delaware committed more than $20 million to help bring Fisker to Delaware.
In 2009 Henrik Fisker was on stage at the former General Motors facility with Delaware leaders and Vice President Joe Biden to rollout the grand plan in Delaware to create thousands of manufacturing jobs at the Boxwood Road plant in Newport. It was hailed at the time as a new era of auto manufacturing.
The car maker went bankrupt before a single Fisker was ever produced in the First State.
Fisker blames the bankruptcy on a number of issues including supply chain disruptions, design delays and the inability to access additional or incremental liquidity. That included loans from the U.S. Department of Energy. They also claim sales were affected by negative press after the company was forced to recall car batteries after cars began catching on fire.
Wanxiang also purchased Fisker’s battery manufacturer out of bankruptcy and has plans to restart production of the Fisker Karma as well as other car models.
While Wanxiang acquired the Boxwood Road facility in the bankruptcy deal, they have not yet announced where they plan to restart production.