Bankrupt A123 Cuts Estimated Creditor Recoveries By Half

Law360, Wilmington (March 13, 2013, 1:35 PM EDT) -- Defunct battery maker A123 Systems Inc. on Tuesday slashed the projected returns for unsecured creditors under its liquidation plan by half, but also said it is challenging the flood of warranty and contract claims that led to the revision.

In an amended disclosure statement filed in Delaware bankruptcy court, A123 cut the estimated recoveries for general unsecured creditors to 32.7 percent, down from 65 percent, two days after former top customer Fisker Automotive Inc. objected that the total claim and recovery numbers didn’t add up and...
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