In re Fisker Automotive Holdings, Inc.
United States Bankruptcy Court for the District of Delaware
2014 WL 210593 (2014)
Hybrid (creditor) purchased the Department of Energy's $168 million secured claim against Fisker (debtor) for just $25 million and then proposed acquiring Fisker's assets through a $75 million credit bid in Fisker's Chapter 11 case; the unsecured creditors' committee objected, seeking an open auction and identifying an interested competing bidder, Wanxiang, who refused to participate unless the court capped Hybrid's credit bid at the $25 million Hybrid had actually paid, arguing the higher credit bid would make a genuinely competitive auction impossible. Fisker and the unsecured creditors petitioned the court to limit Hybrid's credit bid to $25 million.
Whether the bankruptcy court may limit, for cause, the right of a secured creditor to credit bid on bankruptcy estate property.