Fisker Automotive requests court orders on DIP financing from Wanxiang

By Kali Hays

New York, March 3 - Fisker Automotive Holdings, Inc. requested interim and final orders approving $7.25 million of junior debtor-in-possession financing from Wanxiang America Corp., according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The loan can be increased to $10.5 million. Fisker is seeking an interim advance of $4.25 million "to ensure operational stability and preserve the significant material value created by their auction process," the motion stated.

The maturity date of the loan is set for March 31. If the additional financing is made available, the loan will mature on April 30.

Interest will be 10%. However, no interest will be payable except as otherwise specified on the DIP loans if all conditions to closing are satisfied by the Fisker debtors by March 31, but Wanxiang does not close on the sale by then.

If the closing date does not occur on or before March 31, the accrued interest from the closing date of the DIP facility through March 31 will be immediately due and payable. Regardless of the reasons for the failure of the closing date to occur by March 31, the interest on any DIP loans incurred after that date will be payable in cash on a monthly basis.

As previously reported, Wanxiang submitted the winning bid during Fisker's February asset sale.

Wanxiang purchased the company for roughly $117 million, plus $9.14 million to pay off obligations to Fisker's previous lender Hybrid Technology, LLC, the assumption of $8 million in claims and a 20% stake in the affiliate designated to take ownership of the purchased assets.

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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