The Fisker Karma

Henrik Fisker teams up with Chinese billionaire to buy Fisker Automotive

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Fisker Automotive founder Henrik Fisker has joined forces with Hong Kong billionaire Richard Li in an attempt to buy the struggling extended range electric vehicle company by means of purchasing the massive chunk of debt owed to the United States Treasury via the $192 Department of Energy loan.

Henrik Fisker left the company which bears his name back in mid March amidst massive financial turmoil and with his departure from the company founded on his vision – it seemed that the Fisker brand was a good as dead. It has been two months and things certainly haven’t gotten any better with board members and major financial supporters turning their back on Fisker Automotive while company bigwigs have been required to attend meetings with the US government regarding the company’s handling of the $192 million loaned to the company a few years back. Fisker Automotive as the world currently knows it is most likely about to come to an end but there could be a future for the Fisker brand name if company founder Henrik Fisker and his billionaire teammate Richard Li are successful in purchasing the defunct electric automaker.

To buy Fisker Automotive at this point is a fairly simple task for someone who has some millions at their disposal. All an interested party will have to do to gain ownership of Fisker is pay off the government DOE loan which was initially $192 million but $21 million was been recovered when the feds cleaned out the Fisker bank accounts so the current debt is “only” $171 million. Plus, prospective buyers do not have to pay off the entire debt – they simply have to be the highest bidder. Basically, if someone is willing to pay $30 million of that loan back to the government and no one else will pay more…that $30 million bidder will become the owner of Fisker Automotive. The reason that this method occurs is because as it stands, the government stands to recoup none of that $171 million if Fisker just disappears into the automotive history books shy of what little can be gained by selling off the few assets owned by the company. Because of that, a buyer willing to pay $30 million for the company will be more beneficial to the bottom line of the US Treasury than it would be for the feds to take ownership of the near dead EV company.

The reason that I picked that $30 million figure is because Richard Li and Henrik Fisker are reportedly willing to pay between $25-30 million on the DOE loan to gain ownership of Fisker Automotive. This announcement of intention by Mr. Fisker to repurchase the company which bears his name comes after former GM brass Bob Lutz and Chinese firm Wanxiang Group announced their hopes to buy Fisker Automotive by paying $20 million on the DOE loan.


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