Fisker says A123 is discounting its debt levels
Fisker Automotive is accusing battery maker and former vendor A123 Systems of funny math after the latter company filed documents of its debt levels with the US Bankruptcy Court, Reuters says.
The California-based maker of the extended-range plug-in Karma says A123 owes it more than $212 million, much of that coming from warranty breaches (and ensuing production delays) stemming from defective batteries supplied to Fisker. A123 disagrees, and says it owes Fisker just $124 million. Fisker also says A123 "may be overstating how much, and when, creditors would get money," Reuters writes. An A123 attorney didn't respond to a request for comment from Reuters.
Massachusetts-based A123 filed for bankruptcy last October and in late January received government approval to be bought out by China-based Wanxiang Group for about $257 million.