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Judge approves initial motions in Fisker Automotive bankruptcy

A bankruptcy hearing for the troubled electric car-maker has been fast-tracked, scheduled for Jan. 3.


WILMINGTON, Del. – A Delaware judge has kept the bankruptcy case of electric carmaker Fisker Automotive on the fast track, with a hearing scheduled for Jan. 3 on its proposed sale.

The judge on authorized Fisker to continue paying its employees and gave interim approval to its bankruptcy financing, which is being provided by the proposed buyer, Hybrid Technology LLC.

Attorneys say a committee representing unsecured creditors would be formed next week. The unsecured creditors are owed an estimated $250 million but stand to receive a minimum total cash distribution of only $500,000.

The next hearing in the case is set for Dec. 10.

Last week, the US Energy Department revealed that it would lose $139 million in the sale of a loan to the troubled electric car-maker to Hybrid Technology.

The Obama administration announced in September that it planned to sell the $192 million loan.

©The Canadian Press