Fisker Automotive could potentially be in financial danger after its sole electric battery manufacturer filed for bankruptcy last month. A123 Systems, which made all of Fisker’s electric car batteries for its Karma model, filed for Chapter 11 protection in October with $376 million in debt.
According to the Washington Times, A123 Systems is now requesting that its contract with Fisker be terminated, claiming that it is below market value and has caused them to perform at a net loss. However, the luxury automaker is fighting against breaking the contract because it says it would disrupt its business.
Both A123 and Fisker received federal loans from the Energy Department in an effort to boost alternative forms of energy. A123 was given nearly $250 million and Fisker $200 million. Fisker claims terminating its contract with A123 would hurt its investors– who include taxpayers.
If you are considering filing for bankruptcy protection, it is important to work with an attorney who is familiar with the bankruptcy process to ensure you are making the best decisions for you. Contact bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC at (239) 237-0675 to learn about your options.