DOE recoups $21 million from Fisker Automotive's reserve account

Everyone is waiting for Fisker Automotive to file for bankruptcy. And House Republicans are already planning a hearing, scheduled for Wednesday, on the company’s $529 million loan through the DOE’s ATVM program. (CEO TonyPosawatz and co-founder Henrik Fisker are expected to testify).

A few points of clarification, lest this become Solyndra Part Deux: American taxpayers are not on the hook for $529 million.

Fisker’s loan from the DOE was frozen in June 2011 because it failed to meet several production targets. The company only drew down $192 million, roughly a third of the original.

And earlier this month, the DOE recouped the company’s approximately $21 million reserve account.

“Given the obvious difficulties the company is facing, we are taking strong and appropriate action on behalf of taxpayers,” said Aoife McCarthy of the DOE in a statement Monday. “On April 11, the Department recouped the company’s approximately $21 million reserve account — funds that came from the company’s sales and investors, not our loan– and will apply those funds to the loan.  These actions combined have already protected more than 2/3rds of our original loan commitment.”

Founded in 2007, Fisker raised a whopping $1.2 billion from private investors, including Silicon Valley venture capital firm Kleiner Perkins Caufield and Byers. Ray Lane, until recently a managing partner at the firm, owns a Karma and serves on Fisker’s board of directors.

 

Dana Hull Dana Hull (252 Posts)

Dana Hull covers clean technology and energy policy for the San Jose Mercury News. She often writes about electric vehicles, the smart grid, the solar industry and California energy policy, from RPS goals to Gov. Jerry Brown's big dreams for distributed generation.