Before the collapse of Fisker, the Department of Energy issued a $192 million loan to the struggling electric car maker. Recently, the Department announced that it will be selling the loan at an auction set to be held next month, as the government wants to wash its hands of failed green initiatives it funded before 2012.
The selling of this loan is just the latest in a handful of setbacks for the failing California automaker. The Energy Department originally gave Fisker this loan in 2009 as part of a half-billion-dollar loan guarantee as part of the Obama administration’s program to promote green energy. Other companies to receive green energy loans include the folded-up Vehicle Production Group and Tesla Motors, which repaid its loan in full earlier this year after issuing its IPO.
In 2011, Fisker was unable to meet a series of Department of Energy benchmarks, causing the loan to be suspended. Since then, Fisker has not been able to produce a new vehicle and almost all employees have been laid off. According to the DOE, only $28 million of the initial $192 million has been repaid since the loan initially froze. The Energy Department is hopeful that the auction of the loan will allow them to collect the remaining $164 million balance.
Source: Detroit Free Press