Court Approves $5 Million Loan for Fisker

A Delaware bankruptcy court has approved a request by Fisker Automotive Holdings Inc. to borrow $5 million in interim debtor-in-possession funding from China's Wanxiang Group.

Fisker filed for bankruptcy protection in November after running short on funds to produce its luxury hybrid Karma sedan. The company is scheduled to return to the court in two weeks for approval of an additional $5.5 million from the Chinese auto supplier.

Last month Wanxiang outbid Hybrid Technology Holdings LLC in a 19-round auction for the right to acquire Fisker's assets for $149 million in cash and assumed liabilities. Fisker initially asked the court to approve its sales to Hybrid Technology for $25 million.