The U.S. Department of Energy said Monday that it has taken $21
million out of a reserve account set up as part of a loan to luxury
plug-in car maker Fisker Automotive Inc. in anticipation of a
default on a payment the company owes on a federal loan.
"Given the obvious difficulties the company is facing, we are
taking strong and appropriate action on behalf of taxpayers," the
Energy Department said in a statement. The department "recouped the
company's approximately $21 million reserve account--funds that
came from the company's sales and investors, not our loan--and will
apply those funds to the loan."
Fisker's CEO, Tony Posawatz, said in March the payment on the
$192 million the company borrowed under a federal advanced
technology vehicle program was due Monday.
The Energy Department said it took the money 12 days ago. The
Obama administration has been criticized by Republicans in Congress
for its management of loans made to several clean-energy technology
companies, including Fisker. A GOP-controlled House subcommittee
has scheduled hearings on the Fisker situation later this week.
Fisker's fate is uncertain. The Anaheim, Calif., company has
said that it is trying to find a way to continue operating through
a new owner, which would require a resolution with the U.S.
government. Fisker has hired bankruptcy attorneys Kirkland &
Ellis LLP.
Investors and company leaders continued efforts to find new
investors or buyers, though a deal hasn't yet been reached.
Fisker's outside public relations firm had no comment on the
situation Monday evening.
Fisker in 2010 received approval from the Obama administration
for a $529 million federal loan, aimed at funding a plan for it to
develop a luxury plug-in car and build it at a former General
Motors Co. (GM) factory in Delaware.
That car, called the Atlantic, was to be the second model in
Fisker's lineup, following the $100,000 Karma, which Fisker had
produced at a factory in Finland until last year when production
was halted as the company's money problems intensified.
Earlier this month, Fisker dismissed 150 of its remaining 200
employees to conserve cash after sale discussions with two Chinese
auto makers faltered. Fisker remains in talks with those companies,
Zhejiang Geely Holding Group and Dongfeng Motor Group Co. (DNFGY,
0489.HK), and others ahead of the expected bankruptcy filing, a
person familiar with the situation said.
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