2012 Fisker Karma sedan

Fisker seeks to delay bankruptcy sale of A123 Systems assets

A123's major customer, Fisker Automotive, filed a motion in bankruptcy court seeking a delay in the bankruptcy proceedings, and changes in the asset sales procedures, that Fisker claims will produce better value for creditors.

The bankruptcy and sale of A123 Systems' assets to the highest bidder could disrupt the businesses of A123's customers, such as Fisker Automotive. Fisker has asked the bankruptcy judge to delay the auction of A123 Systems, calling it a hurried sale process. Fisker uses battery packs manufactured by A123 in the Fisker Karma.

"A hurried sale process will be damaging to the estates and derive creditors of value that may be realized through higher and better offers," wrote Gregg Galardi, a Fisker attorney, in court papers filed on Friday in Wilmington Delaware. Fisker is also expected to file an emergency motion challenging the debtor-in-possession loan to A123 from Johnson Controls. The motion seeks an extension of bidding deadlines, related dates, and deadlines in the bidding procedures request.


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