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Feds conduct auction for Fisker loan

The U.S. Department of Energy conducted its auction for its loan to Fisker Automotive on Friday, but the outcome was not expected to be known immediately.

Fisker, the plug-in hybrid car company, encountered numerous problems in its effort to open operations at the Boxwood Road plant, leading the Energy Department to freeze its $529 million loan to Fisker after distributing $192 million.

The company still owes $168 million from the loan, and that is the portion that is being auctioned.

It is the loan, not the company itself, that is up for bid. The loan’s buyer is expected to step into the government’s role and control the liens on Fisker’s assets, which would give the loan buyer considerable sway over the company’s future.

Last month, Peter W. Davidson, executive director of the Energy Department’s loan program, said the agency will require bidders to commit to a “business plan that promotes domestic manufacturing capabilities and related engineering for advanced technology vehicles here in the United States.”

The department reported on Friday that at the conclusion of the auction process, government officials will determine which bid is in the best interest of taxpayers. Once a winner is notified, final negotiations will take place. Information about the winning bidder will not be made public until after the sale is formalized, the department reported.

More <a href=”http://www.delawareonline.com/article/20131012/BUSINESS08/310120023/Feds-conduct-auction-for-Fisker-loan?nclick_check=1>delawareonine.com</a>

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