The bankruptcy of Fisker Automotive could end up costing the U.S. government much more than the $168 million it loaned to the maker of the Karma plug-in hybrid sports car.
According to its bankruptcy filing on Friday, Fisker owns tax breaks worth $320 million.
Fisker's bankruptcy papers said the Southern California-based company plans to sell its automotive operations to a business affiliated with Hong Kong tycoon Richard Li, but it will hold on to the tax breaks after it emerges from bankruptcy.
Fisker piled up some $800 million in net operating losses in recent years, which have a future cash benefit worth approximately $320 million, according to the bankruptcy filing.
That lost tax revenue would add to taxpayers' pain from Fisker's failure.
The U.S. Department of Energy extended the company a $529 million credit line in 2009 as part of the Obama administration's efforts to boost advanced vehicle development in the United States.
The credit line was frozen in 2011 before it could be fully drawn.
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5 comments:
you know this is a direct result of the EPA's over reach into our lives. the EPA is accountable to NO ONE. they aren't elected and they wield enormous amounts of power and control over every American citizen. they must me stopped, dismantled, removed as soon as feasible. much too much of our hard earned tax dollars are completely wasted on these clueless tree huggers.
Solindra and its families; have any of these "green" companies the government loaned money to ever done anything but declare bankruptcy?
I'm seeing pattern here...
7:03 That's exactly right. We doled out billions for these cars, batteries, wind, etc etc... and every one has failed. And, it will continue to fail.
703 your question simply highlights your ignorance on the issue. Practice a bit of intellectual honesty and refrain from voicing your uninformed opinion until you fix this.
7:03 The EPA may have had a voice in the decision to create more energy products, but it was Obama who approved the loans with executive orders. None of these loans were put up for vote. So let Obama pay back us taxpayers.
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