A123 System's bankruptcy created a quite a stir in the plug-in vehicle industry. Now, Fisker is asking the judge that the bankruptcy auction be delayed by a minimum of 30 days so that creditors' value "may be realized through higher and better offers." Fisker is involved in A123 because the battery maker is the sole supplier of battery packs to the Fisker Karma. The deal now means that A123 has $100 million worth of obligations that "give rise to substantial unsecured claims" in Fisker's favor, according to court papers filed today, Bloomberg reports.
Fisker said it would also file an emergency motion to challenge "debtor-in-possession loan." Johnson Controls is set to take over A123's automotive assets, and Fisker said it is not trying to stand in the way of an asset sale in theory. It just wants the delay because "various protections" that Johnson Controls has "are unnecessary, excessive, and counterproductive to a successful sales process."
Fisker attorney Gregg Galardi said the bankruptcy process was "crafted" to benefit Johnson Controls and that, "The best interests of the estates, however, are not well served through a hasty and unfair sale process designed to ensure that JCI is the ultimate purchaser." In other words: don't let all this good stuff go cheaply.