Fisker Trustee Can’t Knock Down Investor Claims

Law360, New York (January 11, 2017, 4:38 PM EST) -- A Delaware bankruptcy judge said Tuesday that the trustee for Fisker Automotive cannot back-burner $14 million in claims by certain investors who owned membership stakes in the bankrupt electric-car maker, finding the investors' interests were not directly issued by the company and were outside its control.

U.S. Bankruptcy Judge Kevin Gross said Fisker used a placement agent, which issued “membership units” to investors including Atlas Capital Management LP through various “special purpose vehicles” and subagents like Middlebury Securities LLC. He ruled that the entities used by...
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