B456 Systems, formerly known as A123 Systems, closed a deal with Fisker which agreed to reduce its claims by 89% to $15 million.
According to court documents, the deal with the bankruptcy’s unsecured-creditors’ committee will reduce Fisker’s $140 million in claims due to a rejection of its supply agreement and also an alleged breach of warranty obligations.
“This reduction will have a substantial positive effect on the value of other unsecured claims,” lawyers for the committee said in a court filing. The committee “analyzed the Fisker proofs of claim, and the committee believes that the settlement embodied in the stipulation represents a compromise that is the best possible outcome” for B456’s estate.
This means that Fisker will see its breach-of-warranty claim cut to $15 million from $48.7 million and the $91.2 million claim for damages stemming from the rejection of the supply agreement will be disallowed. A123 will now seek court approval to distribute the proceeds it got from selling almost all of its businesses .
A123 filled for bankruptcy in October 2012, after a failed deal with Wanxiang Group, and in December it received court approval to sell most of its assets to the Chinese automaker’s US unit. Wanxiang America paid $256.6 million for A123’s commercial business, automotive and grid assets.