The bankrupt electric-car battery maker formerly called A123 Systems Inc., now renamed B456 Systems Inc., reached a settlement in which Fisker Automotive Inc. reduced its claims by 89 percent to $15 million, Bloomberg News reported yesterday. The accord with the bankruptcy's unsecured creditors' committee will substantially cut Fisker's $140 million in claims stemming from a rejection of its supply agreement and alleged breach of warranty obligations, according to court documents filed on Tuesday. The agreement will benefit all unsecured creditors, the committee’s lawyers said. Fisker's breach-of-warranty claim will be reduced from $48.7 million to a $15 million unsecured claim and its $91.2 million claim for damages from the rejection of its supply agreement will be disallowed, according to court documents. The case is In re B456 Systems Inc., 12-12859, U.S. Bankruptcy Court, District of Delaware (Wilmington).
For further analysis of supply agreements in bankruptcy, be sure to pick up a copy of Interrupted! Understanding Bankruptcy's Effects on Manufacturing Supply Chains available now in the ABI Bookstore.