Fisker cleared to borrow $four.98 million from Wanxiang

March 6, 2014 – 2:49 pm ET

(Bloomberg) — Fisker Automotive Holdings Inc. obtained court approval to borrow $ 4.98 million from Wanxiang Group, the Chinese auto-parts maker that won an auction for the bankrupt maker of luxury plug-in automobiles.

U.S. Bankruptcy Judge Brendan Linehan Shannon accredited the interim financing at a hearing Thursday in Wilmington, Del.

Fisker will return to court March 21 to seek out approval of the rest of a $ 8.5 million debtor-in-possession loan.

The new financing replaces an $ 71 million loan from Hybrid Technological innovation LLC. Hybrid, which also bid for Anaheim, Calif.-primarily based Fisker, terminated the financing agreement and declared all principal and accrued curiosity due after Wanxiang won court approval to purchase the automaker’;s assets.

Fisker filed for court protection on Nov. 22 with a plan to promote its assets to Hybrid for about $ 25 million.

Hybrid held a U.S. government loan that Fisker had defaulted on.

Unsecured creditors objected to the price tag and aided carry Wanxiang into the case in December. Wanxiang topped Hybrid right after 19 rounds of bidding with an provide that incorporated $ 126.2 million in funds, plus equity and $ 8 million in assumed liabilities.

The buy needs U.S. antitrust clearance.

Fisker listed assets of as a lot as $ 500 million and debt of as significantly as $ one billion in its Chapter 11 petition. 

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