Fisker moves to dismiss Wanxiang bid

Fisker Automotive has asked a federal judge to reject a recent bid made for the company by Wanxiang Group on the grounds that the Chinese auto supplier was responsible for the company’s bankruptcy.

Wanxiang, China’s largest auto supplier, made a surprise bid for Fisker on Monday, throwing the company’s pending sale to a Hong Kong investor into doubt. Although Wanxiang’s proposal is preferred by Fisker’s creditors, the maker of the Karma sedan reject the bid on the basis that the Chinese company was responsible for the automaker’s financial collapse.

“Wanxiang now seeks to profit from a bankruptcy that it helped cause,” Fisker said in a filing, according to Reuters.

Fisker’s displeasure with Wanxiang stems from the company’s purchase of A123 Systems Inc., which supplied batteries for the Karma. Fisker claims Wanxiang cut all ties between Fisker and A123 following its purchase of the supplier.

Wanxiang denies those allegations, stating that it purchased A123 after Fisker halted production of the Karma.

“Fisker was no longer producing cars at that time,” said Sunni Beville, a lawyer representing Wanxiang.

Investors favor Wanxiang’s $24.75 million cash bid to Hybrid Technology’s $25 million “credit bid”, which would leave Fisker’s debt holders empty handed.