A123 Creditors Get Substantial Return Under Ch. 11 Plan

Law360, Wilmington (February 7, 2013, 3:54 PM EST) -- A123 Systems Inc. filed a liquidation plan Wednesday that envisions a significant recovery for creditors, with secured claims against the government-funded battery maker paid in full and unsecured creditors receiving a 65 percent return.

However, the plan — funded through the controversial $256.6 million sale of A123’s assets to China’s Wanxiang Group Corp. — does not anticipate any distributions for the company’s shareholders, according to a disclosure statement filed in Delaware bankruptcy court.

Subordinated noteholders owed nearly $144 million are among the unsecured creditors receiving a...
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