A service of Salisbury University and University of Maryland Eastern Shore
Play Live Radio
Next Up:
Available On Air Stations
Local News

$35 Million For Fisker Automotive's Unsecured Creditors

Fisker logo

WILMINGTON, Del. (AP) - Fisker Automotive's unsecured creditors will get $35 million in cash and stock under a new bankruptcy settlement.

But the News Journal reports that Gov. Jack Markell's office warned Monday that despite last week's settlement, Delaware won't see much for the $21.5 million in economic development incentives it awarded Fisker in 2010.

Markell spokeswoman Kelly Bachman says in a statement that the state is not expecting a substantial recovery of its investment.

Because of the incentive package, Delaware's claim to Fisker money remains pooled among the unsecured creditors.

California-based Fisker planned to build cars at the former General Motors plant in Newport, but filed for bankruptcy protection in November. Chinese auto parts giant Wanxiang Group paid $149 million to take over Fisker at a February auction.