FISKER AUTOMOTIVE - CASE STUDY
Industry: Automobile Manufacturers
Transaction Type: Chapter 11 §363 Sale
Fisker Automotive Holdings, Inc. was an American automotive company that produced premium plug-in hybrid electric vehicles with extended range, environmentally responsible technology, and uncompromised vehicle performance.
In light of excess leverage and a constrained liquidity profile caused by repeated delays and drastic volume curtailment in production, Fisker Automotive filed for chapter 11 bankruptcy in the District of Delaware in November 2013.
In connection with the chapter 11 filing, Emerald was retained as the exclusive financial advisor to the Official Committee of Unsecured Creditors of Fisker Automotive, focusing on the following action items:
- Opposing Fisker’s proposed deal with Hybrid and limiting Hybrid’s ability to credit bid its debt
- Creating an open auction process for the assets of the Debtors
As a result of Emerald’s involvement, the following outcomes were successfully achieved:
- The winning bidder of the open auction, Wanxiang, offered a bid of $149.2 million, almost 6x what Fisker was seeking when it filed for bankruptcy.
- $35.0 million in total value was carved out for the General Unsecured Creditors, despite the fact that the winning bid led to a hurdle rate shortfall of approximately $18.0 million.