Fisker Asks For More Time With A123
Fisker is asking a bankruptcy judge to delay an asset sale related to beleaguered battery maker A123 Systems.
Bloomberg reports that Fisker filed an “emergency motion” to challenge the proceedings. A proposed asset sale would see Johnson Controls Inc. purchase the automotive assets of A123, including plants in Michigan and China, with JCI also looking to acquire further assets. According to court papers filed in Delaware , Gregg Galardi, an attorney for Fisker claimed that
“A hurried sale process will be damaging to the estates and deprive creditors of value that may be realized through higher and better offers…The best interests of the estates, however, are not well served through a hasty and unfair sale process designed to ensure that JCI is the ultimate purchaser.”
Other parties, including the University of Montreal and Massachusetts Clean Energy Technology Center (which was created under 2008’s Green Jobs Act and loaned money to Fisker) filed separate objections to the asset sale.
More by Derek Kreindler
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There are other reasons why a Chinese company may want to get advanced battery tech besides automotive use. For example, diesel attack submarines or other military use. Therefore, it does not support your claim that this a successful viable company.
"if it was such a bad company, WHY ARE THE CHINESE TRYING TO BUY IT??? There are political forces at work here trying to undermine A123." A123 had their shot and investors voted with their feet. Your ridiculous suggestion that Republicans are behind any of this shows not only how little you know about business but clearly identifies you as an Obama fanboy. Quit watching MSNBC so much, it's not good for you.
The funny-sad part here is to watch two government welfare cases fighting over how one of them is bailed out. Fisker is a disaster, and it's only fitting that they're chained to A123's sinking ship while both have received substantial government handouts. Fisker's eventual failure won't be due to A123, however, but due to their own foibles.
I must admit, the more TTAC hates Fisker the more interesting the cars become! Heh, I just realized, if I bought a Fisker it would be the second Valmet produced automobile in my driveway! Hrm, this is getting interesting.