In Washington Republican lawmakers on the House Oversight Committee blasted Fisker Automotive and the US Energy Department yesterday for nearly $200-million in loans to the ailing car company.
The Wilmington News Journal reports sayst that money went to not only development the gas-electric hybrid model called the Karma but also to buy the Boxwood plant in Delaware.
Once the loan was made lawmakers like Ohio Congressman Jim Jordan charged that the feds bent over backwards to accommodate Fisker even though the company was underperforming and potentially breaching financial covenants as early as three years ago.
Energy officials halted disbursement of the funds in June of 2011.
Fisker officials also denied exercising any undue political favors to get the loan.
In October of 2011, Delaware Governor Jack Markell did sent a letter to the Energy Department urging it to work with Fisker to restructure the loan and the company’s business plan.
The loan was not restructured.
Delaware provided more than $20 million in grants and loans to the California based car company.
