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. Full story for BostonGlobe.com subscribers.