Hong Kong billionaire Richard Li stands to make a handsome profit from a deal with creditors of failed carmaker Fisker Automotive Inc., the Wall Street Journal reported Monday.
Unsecured creditors of Fisker have come to terms with Li’s Hybrid Tech Holdings LLC over how to split the US$120 million paid for Fisker’s operations by Wanxiang Group, the report said citing court filings.
Hybrid Tech lost to Wanxiang Group in a bidding contest for the carmaker.
Li could collect as much as US$90 million on his US$25 million investment in a loan auctioned off last year by the US Department of Energy which had backed Fisker, the report said.
Unsecured creditors owed an estimated US$80 million to US$100 million will also benefit under the deal, said a lawyer for the official committee representing Fisker suppliers and other unsecured creditors.
Initially, they were offered less than US$1 million by Hybrid Tech which attempted to claim Fisker without an auction to test the price it was offering, the report said.
The settlement gives unsecured creditors US$20 million to share, cash to add to the stake in a reorganized Fisker that they are being given as part of the takeover by Wanxiang, a Chinese car parts maker.
Wanxiang plans to revive the carmaker.
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