Fiskers Claims Against A123 Systems Cut By 89%

Fisker Automotive made claims of $140 million against A123 Systems (now called B456  Systems. They moved onto the next letter in the alphabet and used the three numbers after 123) because of the rejection of its supply agreement and alleged breach of warranty obligations. The claims were $91.2 million for damages caused by rejection of its supply agreement, and $48.7 million for a breach of warranty obligations.

Alas, the $91.2 million supply agreement claim was struck down, and the $48.7 million warranty breach claim reduced to $15 million, according to court documents. A123’s disclosure statement was approved by a U.S. Bankruptcy Judge: Kevin Carey.

It is an outline of A123 Systems‘ liquidation plan which will be used by creditors to decide how to vote on the plan, according to court documents that were filed on the 14th of March. A123 Systems’ bankruptcy is saddening, and, to opponents of alternative energy research and development funding, it is another reason to lobby against it.

In any new industry, there will always be failures. It is impossible for there to be no failures in any new industry. That would be unrealistic. This should be kept in mind.

Source: Bloomberg