Published April 17, 2013
DOVER, Del. – A Delaware bankruptcy judge is approving a settlement between electric car maker Fisker Automotive Inc. and its former battery supplier.
The settlement approved Wednesday reduces Fisker's claims against the company formerly known as A123 Systems Inc., now called B456 Systems Inc., by almost 90 percent.
Fisker will be granted a $15 million unsecured claim on an initial claim of $48.7 million against A123 for breach of warranty. Fisker's $91.2 million claim for rejection of its supply agreement with A123 will be disallowed.
Waltham, Mass.-based A123 went into bankruptcy protection in October, three years after being awarded a $249 million Energy Department grant.
Fisker, which has drawn $193 million of a $529 million Energy Department loan it received, is expected to seek bankruptcy protection as well within days.