Any self-respecting dealer would refuse to sell a Fisker Karma extended-range plug-in for a mere $12,000, but Fisker Automotive may be taking that approach with former battery supplier A123 Systems by settling for about 11 cents on the dollar in a bankruptcy-court claim.
The California-based automaker settled with A123 Systems (which renamed its old assets to be liquidated B456 Systems) for $15 million, down from what had been $140 million in claims stemming from warranty breaches and resulting production delays caused by defective batteries, Bloomberg News reports, citing bankruptcy court records. A123 filed for bankruptcy in October, and US courts approved China-based Wanxiang to buy A123 for about $256.6 million in late January
Last month, Fisker furloughed its US employees and hired a law firm for possible bankruptcy proceedings. The company's co-founder and namesake Henrik Fisker stepped down as the company's executive chairman in March.