Fisker Automotive committee objects to Hybrid Tech's motion to speed up appeal process

By Lisa Kerner

Charlotte, N.C., Jan. 16 - Fisker Automotive Holdings, Inc. official committee of unsecured creditors filed an objection to Hybrid Tech Holdings LLC's emergency motion to set expedited deadlines and a shortened timeframe to reply to a Hybrid appeal, according to a Jan. 15 filing with the U.S. Bankruptcy Court for the District of Delaware.

On Jan. 14, Hybrid, in its capacity as assignee of the rights of the Department of Energy as lender to Fisker, appealed a Jan. 10 ruling that limits its ability to credit bid its secured claim for Fisker's assets. Following the court decision, Fisker said it will "move forward with a competitive auction process," according to a news release.

On Thursday, Hybrid filed a motion in further support of its prior emergency motion. The company said it "tailored its request for shortened dates to dovetail with the contemplated auction and sale deadlines."

As previously reported, in November the DOE sold to Hybrid Technology, LLC its $168 million interest in a secured loan previously extended by the Federal Financing Bank to Fisker.

Hybrid Technology also extended debtor-in-possession financing to Fisker while Hybrid Holdings was to acquire Fisker's assets through a partial $75 million credit bid of the DOE loan.

Hybrid said the court capped its credit bid at $25 million, the discounted amount paid for the loan.

"The bankruptcy court's decision was reached at the behest of the statutory committee of unsecured creditors appointed in Fisker's bankruptcy cases, which preferred an alternative bidder," Hybrid said.

Hybrid said the court accepted the committee's recommendation on limiting the credit bid, expressing concerns about the DOE loan auction.

However, Hybrid said the Bankruptcy Code does not permit courts to arbitrarily cap a secured creditor's credit bid on the basis of the price paid to acquire the secured claim.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.