Motors Liquidation seeks OK to sell property to Fisker for $20 million

By Lisa Kerner

Charlotte, N.C., June 9 - Motors Liquidation Co., formerly General Motors Corp., asked the court to approve a settlement agreement for the sale of its Wilmington, Del., assembly plant to Fisker Automotive, Inc. for $20 million or to the highest bidder, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is scheduled for June 29.

Motors Liquidation entered into a sale agreement on June 8 with Fisker for the sale of real and personal property, including a motor vehicle assembly plant, located at 801 Boxwood Road, Wilmington, Del.

The assembly plant is approximately 3.2 million square feet, and the real property on which it sits is approximately 142 acres, the filing said.

On July 5, 2009, the court approved the sale of substantially all of the debtors' assets to NGMCO, Inc.

In light of the fact that the debtors no longer operate as manufacturers of motor vehicles, they seek to sell the Delaware property in an effort to wind down their businesses, liquidate their assets and resolve outstanding liability with respect to environmental issues affecting certain properties, the filing said.

While competing bids are due prior to the hearing date, Fisker has "submitted the highest, best, and only formal offer received for the property during the extensive marketing period," the filing said.

Motors Liquidation said it believes potential buyers have had ample time to submit offers.

GM, a Detroit-based automaker, filed for bankruptcy on June 1 in the U.S. Bankruptcy Court for the Southern District of New York. The new General Motors Corp. emerged from Chapter 11 on July 10, and Motors Liquidation's Chapter 11 case number is 09-50026.

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