Delaware Judge Approves Settlement Between Fisker and A123 Systems image

A bankruptcy judge in Delaware approved a settlement between Fisker and A123 Systems.

The settlement was approved yesterday, April 17th, and reduces Fisker’s claims against battery supplier A123 Systems, now known as B456 Systems, by almost 90%. Fisker will receive $15 million unsecured claim on its initial claim of $48.7 million against the battery supplier for breach of warranty. The judge disallowed the automaker’s $91.2 million claim for rejection of its supply agreement with B456 Systems.

On April 24th, the House Oversight and Government Reform Committee will take a decision regarding the $529 million loan offered to Fisker. In 2009 the Energy Department offered Fisker a $529 million loan, from which $193 million was spent to develop the Karma model and the rest of the loan was frozen in 2011 due to the automaker’s problems.

“The Department of Energy has never owned up to its mistakes and acknowledged it didn’t do a good job of choosing Fisker and A123 as worthy of taxpayer investment,” U.S. Sen. Chuck Grassley, R-Iowa, said in an e-mailed statement.

The U.S. Department of Energy offered the Massachusetts-based maker of electric vehicle battery packs a grant of $249 million in 2009, but the company filed for bankruptcy protection in October 2012.