Saturday, February 15, 2014

Fisker Gets Bought



The Bankruptcy judge in Delaware did wonders for the unsecured creditors in holding an auction for the control of the bankrupt company Fisker.  Judge Kevin Gross forced the auction over the objections of Hybrid Technology  the firm that bought the secured US DOE loans with face value of $169 million for only $25 million.   Hybrid thought they had $169 million of leverage but the judge ruled they only had leverage equal to amount they bought the loans, the $25 million.

Wanxiang could and did impute more value to Fisker as Wanxiang already owns Fisker’s once bankrupt battery supplier A 123.  A 123 is another case where Obama’s DOE took a bath on a green energy loan.    Wanxiang bid $149.2 million in cash and other considerations for Fisker and the judge will rule on Tuesday whether he approves his own handy work of getting significantly more for the unsecured creditors.   The Judge did a great job handling the bankruptcy and this should be a case study in how to get the most money for those who were screwed by Fisker and its board of directors and management.


What is also a case study is how inept Mr. Obama, Dr. Moniz, and the DOE were in only getting $25 million for $169 million of secured loans we the tax payers paid for by giving Fisker (Al Gore et al) our money.   The DOE should have got $149.2 million back not the paltry $25 million.   The auction proved the market value of Fisker.   The DOE had all the leverage as the secured lender but folded so bloody fast for next to nothing with a loss to taxpayers of $144 million.   This is no different than Obama and his USDA secretary Vilsack selling hundreds of millions of pounds of sugar that cost taxpayers 21 cents a pound for less than 4 cents a pound to make “green” ethanol for fuel.  The whole green story of the administration is one of incompetence and giveaway.


I actually think Wanxiang can resurrect Fisker and may still produce a car in the USA that is similar to the Chev Volt that sells for around $50,000.   They have the patents to do this.  When Leslie Stahl did her 60 Minutes piece on the clean-tech bust she interviewed the head of Wanxiang in the USA and I was impressed that he told her to stop asking nonsense about his Chinese company and that he was simply being a capitalist.   It is amazing how he as a man who grew up under communism gets the profit motive while Obama who grew up under capitalism gets the loss motive.   I guess it all depends on who is smart in business and who is not.   Obama, Chu, Moniz, Vilsack the DOE, and the USDA should all be sent to China for some reeducation in economics 101.  Perhaps Judge Judy is right about Obama's legacy that Beauty Fades Dumb is Foerever.

10 comments:

  1. Unfortunately, China has decided to close down the re-education camps. But we do have Guantanamo. And drones for the recidivists.


    http://www.telegraph.co.uk/news/worldnews/asia/china/10561434/China-abolishes-its-labour-camps-and-releases-prisoners.html

    ReplyDelete
  2. OK no re-ed for the fools at the DOE and USDA which together are DOA

    ReplyDelete
  3. Hey, Yes I agree, as good as the model S is, it could have been a tad better in a Fisker design. there is still room for this to happen as Tesla's next sports luxury car in my opinion. Who know's it might, though I suspect Fisker has some serious humble pie to eat before this can happen.Thanks alot......
    >>>>>>>>>>>>>>>>>>...
    appleloans.co.uk

    ReplyDelete
  4. دينا نقل عفش داخل وخارج الرياض
    شركات نقل العفش بخميس مشيط
    افضل شركة نقل عفش بحائل






    شركة نقل عفش
    اهم شركات مكافحة حشرات بالخبر كذلك معرض اهم شركة مكافحة حشرات بالدمام والخبر والجبيل والخبر والاحساء والقطيف كذلك شركة رش حشرات بالدمام ومكافحة الحشرات بالخبر

    ReplyDelete
  5. شركة مكافحة حشرات بالدمام
    شركة تنظيف خزانات بجدة الجوهرة من افضل شركات تنظيف الخزانات بجدة حيث ان تنظيف خزانات بجدة يحتاج الى مهارة فى كيفية غسيل وتنظيف الخزانات الكبيرة والصغيرة بجدة على ايدى متخصصين فى تنظيف الخزانات بجدة
    شركة تنظيف خزانات بجدة
    شركة كشف تسربات المياه بالدمام

    ReplyDelete
  6. شركة نقل عفش واثاث
    شركة نقل عفش بالرياض وجدة والدمام والخبر والجبيل اولقطيف والاحساء والرياض وجدة ومكة المدينة المنورة والخرج والطائف وخميس مشيط وبجدة افضل شركة نقل عفش بجدة نعرضها مجموعة الفا لنقل العفش بمكة والخرج والقصيم والطائف وتبوك وخميس مشيط ونجران وجيزان وبريدة والمدينة المنورة وينبع افضل شركات نقل الاثاث بالجبيل والطائف وخميس مشيط وبريدة وعنيزو وابها ونجران المدينة وينبع تبوك والقصيم الخرج حفر الباطن والظهران
    شركة نقل عفش بجدة
    شركة نقل عفش بالمدينة المنورة
    شركة نقل اثاث بالرياض

    ReplyDelete