Fisker Requests Delay of A123 Systems Bankruptcy Auction

Fisker Requests Delay of A123 Systems Bankruptcy Auction

Earlier this month, A123 Systems, the company that once supplied the battery technology for the Chevrolet Volt and Fisker Karma, announced its bankruptcy. Fisker is now asking the bankruptcy judge to delay the auction of the company.

The American automaker is requesting an extension of the bid deadline, auction date, and related dates and deadlines in the bidding procedures by at least 30 dates according to the court papers.

“A hurried sale process will be damaging to the estates and deprive creditors of value that may be realized through higher and better offers,” Gregg Galardi, a Fisker attorney, said in court papers filed.

A123 has said that it would sell its automotive-business assets to Johnson Controls, Inc. in a deal valued at $125 million. The company is scheduled to return to court next week to seek approval of the remainder of a $72.5 million loan and intends to file court papers to seek interim approval of a replacement debtor-in-possession facility from Wanxiang America Corp.

Fisker on the other hand, isn’t opposed to the need for an asset sale, but does oppose the “various protections” for Johnson that the automaker are saying “are unnecessary, excessive, and counterproductive to a successful sales process.” The automaker also plans to file an emergency motion to challenge the so-called debtor-in-possession loan. . [Source: Automotive News]