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.


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    • 1 Second Ago
  • 9 Comments
      2 wheeled menace
      • 5 Months Ago
      These stories about failed EV companies just keep getting better.
      EVnerdGene
      • 5 Months Ago
      $15M. Hey everybody, back to work at Frisker. But did A123/B456/C789 repay their loan to the DOE ?
      • 5 Months Ago
      Yes, tomorrow is apparently it for them. 180 employees will be done tomorrow. Chapter 11. Heard from a source in the company. Big happenings tomorrow morning. News will break early.
        Spiffster
        • 5 Months Ago
        Wow... that sucks. Cant say we all didnt see this coming a year ago though. Would have loved to see the Atlantic make it to production. Amazing that Tesla is doing so well considering how difficult this industry is to break into.
        brotherkenny4
        • 5 Months Ago
        Chapter 11 permits reorganization, so it may or may not be "it" for them.
      dlubeck_mbz
      • 5 Months Ago
      I just heard that almost everyone at Fisker is being laid off tomorrow. I guess it's finally here. Anyone else hear the same?
      brotherkenny4
      • 5 Months Ago
      Yes, everything is a panic. All change, a depressing weight upon our mind. Fear should be had by all. We are meant to be light people with good self esteem, as taught to us by our 7th grade social studies teacher. Darn these realities, this market economy. How dare it enter into our dreams of nirvana. I am going back to the video games.
      Spec
      • 5 Months Ago
      Sad to see the struggling companies fight each other. At least it is settled. The EV biz has definitely been a difficult grind with many casualties but it seems like it has broken through and will not go away.