Fisker bankruptcy case on fast track

AP News
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Posted: Nov 26, 2013 3:06 PM

WILMINGTON, Del. (AP) — A Delaware judge has kept the bankruptcy case of electric carmaker Fisker Automotive on the fast track, with a hearing scheduled for Jan. 3 on its proposed sale.

The judge on Tuesday authorized Fisker to continue paying its employees and gave interim approval to its bankruptcy financing, which is being provided by the proposed buyer, Hybrid Technology LLC.

The proposed sale would result in a loss of $139 million to federal taxpayers on an Obama administration green-energy loan to Fisker, which is based in Anaheim, Calif.

Attorneys say a committee representing unsecured creditors would be formed next week. The unsecured creditors are owed an estimated $250 million but stand to receive a minimum total cash distribution of only $500,000.

The next hearing in the case is set for Dec. 10.