"At this stage, public money would not be protected," the fund's spokesman was quoted as saying by Autonews. He added that BKC's shareholders' meeting, scheduled for Wednesday, may be canceled.
The funding was agreed upon ever since March, when France said it is willing to provide additional support for the carmaker, but only after it presents a realistic plan in return for the money. The FSI was willing to give Heuliez 10 million euros ($13.63 million) out of the 45 million euros the carmaker said it needed to survive the crisis.
The money promised by FSI would only have arrived in Heuliez's accounts as part of a larger group of investors who are willing help the company raise the 45 million euros it needs. Until April this year, only electricity provider EDF expressed its interest in chipping in. In July, BKC came along and was chosen to take over the carmaker.
Heuliez's future now relies on the promise of the Friendly concept, a full-electric model that incorporates a nickel metal hydride battery and offers room for three occupants.
The Friendly could reach a maximum speed of around 70 mph (112.6 km/h), with the aforementioned battery pack lasting for approximately 140 miles. More importantly, the car could be recharged using any standard wall outlet. Set to begin deliveries in February 2010, the Friendly was expected to sell no less than 10,000 units a year.
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