Wanxiang increases offer for Fisker

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Associated Press

Posted on January 8, 2014 at 2:04 PM

Updated Wednesday, Jan 8 at 4:02 PM

WILMINGTON, Del. (AP) — Chinese auto parts conglomerate Wanxiang Group Corp. has increased its offer for Fisker Automotive, heating up the fight for the failed electric-vehicle maker.

Wanxiang sweetened its bid with an additional $10 million in cash.

An attorney for Fisker's official committee of unsecured creditors told a Delaware bankruptcy judge Wednesday that Wanxiang may increase its offer even more if the judge approves a competitive auction for Fisker.

But Fisker wants the judge to approve a private sale to Hybrid Technology LLC, which is owned by Hong Kong billionaire Richard Li. Hybrid became Fisker's senior secured lender by buying a failed Department of Energy loan for $25 million. That resulted in a loss to U.S. taxpayers of $139 million.

The proposed sale will be considered at a hearing Friday.

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