WILMINGTON, Del. (Bloomberg) -- Old General Motors Corp., now formally named Motors Liquidation Co., filed a motion setting up a June 29 hearing for sale of a shuttered plant in Wilmington for $20 million to Fisker Automotive Inc.
The sale was originally announced in October when the letter of intent said the price was $18 million.
Irvine, Calif.-based Fisker will use the plant to build plug-in hybrid electric vehicles. Financial assistance is coming from the U.S. Energy Department. The original announcement said Fisker would spend $175 million on the plant intended to produce cars retailing for $39,900 after rebates.
Old GM says the plant has been thoroughly marketed. Every potential buyer aside from Fisker either intended to sell the real estate or liquidate the equipment.
Although old GM will entertain other offers, there won’t be a formal auction. If another buyer surfaces, Fisker won’t receive a breakup fee, court papers say.
The Delaware plant was among those left behind when Old GM sold the core business in exchange for 10 percent of the stock of the new company plus warrants for 15 percent.
The warrants will have value if the new company is profitable enough to raise the company’s value to specified levels. New GM is 60.8 percent owned by the U.S. government. Old GM began the largest manufacturing reorganization in history by filing under Chapter 11 on June 1, 2009. The sale was completed on July 10.
GM listed assets of $82.3 billion against debt totaling $172.8 billion.