Fisker Automotive files liquidation plan, sale and DIP loan motions

By Caroline Salls

Pittsburgh, Nov. 25 - Fisker Automotive Holdings, Inc. filed its plan of liquidation and related disclosure statement, asset sale motion and debtor-in-possession financing motion with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company is requesting court approval to sell its assets to Hybrid Tech Holdings, LLC.

Fisker said Hybrid is the lender under a $170 million loan secured by first liens on substantially all of the companies' assets. Hybrid's parent, Hybrid Technology, LLC, purchased the loan from the U.S. Department of Energy (DoE).

The company said Hybrid has agreed to credit bid $75 million of claims under the DoE loan, to waive $4 million of claims held under proposed post-bankruptcy financing and to assume customary liabilities.

In addition, the purchaser has committed to support the Fisker debtors' proposed Chapter 11 plan by funding up to $725,000 in creditor distributions.

Hybrid Technology has also committed to provide up to $8.14 million in DIP financing to fund the sale and Chapter 11 process.

Interest on the DIP loan will be 10%.

The facility is scheduled to mature on the earlier of 90 days after the bankruptcy filing date and the sale closing date.

The company is seeking interim access to $1.7 million of the financing. The interim hearing is scheduled for Nov. 26.

Plan terms

Under the proposed plan, a liquidator will be appointed to govern the liquidation of Fisker's estates and the distribution of its remaining assets and sale proceeds to stakeholders and creditors.

Treatment of creditors will include the following:

• To the extent not otherwise paid in full during the Chapter 11 case, holders of administrative claims, priority tax claims and other priority claims will receive a share of senior claims assets;

• DIP facility claims will be waived in accordance with the purchase agreement;

• Senior loan claims will be satisfied and released in exchange for the credit bid;

• Holders of other secured claims will either be paid in full in cash or receive the collateral securing the claims;

• Holders of SVB loan claims will receive a share of a cash payment;

• If holders of general unsecured claims vote to accept the plan, they will receive a share of cash remaining after senior claims are paid and a share of an unsecured creditor recovery pool. If they vote to reject the plan, the unsecured creditor recovery pool distribution will be eliminated;

• Holders of intercompany claims and interests will receive no distribution, provided, however, that the debtors may reinstate these claims and interests solely to implement the plan; and

• Holders of section 510(b) claims and holding company interests will receive no distribution.

Fisker, an Anaheim, Calif.-based electric vehicle manufacturer, filed bankruptcy on Nov. 22. The Chapter 11 case number is 13-13087.

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