Electric car manufacturer Fisker Automotive received a fraction of what it sought in a lawsuit against its former battery manufacturer in a settlement in a Delaware court on Wednesday, the Associated Press reported:
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.
Fisker received nearly $200 million in government loans before the Department of Energy cut off the manufacturer’s access to the money. The department had approved over $500 million in loans for Fisker.
The company’s production of cars came to a halt when its battery manufacturer, A123, went bankrupt.
A123 had itself received a grant from the Department of Energy in 2009. A123’s collapse cost Fisker about $50 million, according to the company.
A123 was then acquired by a Chinese firm and renamed B456 Systems, Inc..
Fisker’s bankruptcy is expected in the next few days, the AP reported. The embattled car manufacturer recently laid off the vast majority of its employees.
Published under: A123 , B456 Systems , China , Fisker , Obama Economy