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Bankruptcy judge orders auction for Fisker

Fisker Automotive’s Fisker Karma, a sports luxury plug-in hybrid car, was displayed at the 2010 Los Angeles Auto Show.
Fisker Automotive’s Fisker Karma, a sports luxury plug-in hybrid car, was displayed at the 2010 Los Angeles Auto Show.Damian Dovarganes/Associated Press/File 2010

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WILMINGTON, Del. — A Delaware bankruptcy judge on Friday ordered a competitive auction for the assets of Fisker Automotive, rejecting a proposal by a group led by Hong Kong billionaire Richard Li to assume control of the failed electric auto manufacturer in a private sale.

U.S. Bankruptcy Judge Kevin Gross refused to accept Hybrid Technology LLC’s plan to use $75 million it said it is owed as Fisker’s senior secured lender as a credit bid for Fisker’s assets. Agreeing with Fisker’s official creditors committee that a competitive auction was the best way to maximize recoveries for Fisker creditors, Gross capped Hybrid’s credit bid at $25 million.

Chinese auto parts conglomerate Wanxiang Group Corp. offered an alternative cash bid of $35.7 million as the starting point for a competitive auction.

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