Quimbee logo
DMCA.com Protection Status
From our private database of 15,400+ case briefs...

In re Fisker Automotive Holdings, Inc.

United States Bankruptcy Court for the District of Delaware
2014 WL 210593 (2014)


Facts

Fisker Automotive Holdings, Inc. (Fisker) (debtor) was formed to design and manufacturer hybrid-electric cars. Among other financing, Fisker obtained a $168 million loan from the United States Department of Energy (DOE) to fund the establishment of an assembly and production site. Fisker suffered financial setbacks. Hybrid Tech Holdings, LLC (Hybrid) (creditor) purchased the DOE’s secured claim for $25,000,000 and took the DOE’s place as Fisker’s senior secured lender. Fisker filed for reorganization under chapter 11 of the bankruptcy code. Fisker entered into discussions to sell Fisker’s assets to Hybrid through an asset purchase agreement. Hybrid proposed to acquire the assets with a $75,000,000 credit bid. The committee of unsecured creditors (the unsecureds) objected to the proposed sale, sought an open auction, and endorsed Wanxiang American Corporation (Wanxiang) as an interested bidder. The unsecureds and Fisker argued that Hybrid’s right to credit bid should be limited to $25,000,000, which was the price Hybrid had paid for the claim. The unsecureds and Fisker claimed that Hybrid’s ability to credit bid above that amount precluded the possibility of a meaningful auction that could result in a higher price for Fisker’s assets. Wanxiang refused to take part in the auction unless the court limited Hybrid’s ability to credit bid. Fisker and the unsecureds petitioned the bankruptcy court to cap Hybrid’s credit bid at $25,000,000.

Rule of Law

Issue

Holding and Reasoning (Gross, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 321,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 15,400 briefs, keyed to 210 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.