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“Old A123” Wins Court Approval for Reorganization Plan
A federal bankruptcy judge has approved the liquidation plan of B456 Systems Inc. which consists of the assets of battery maker A123 Systems Inc. that remain in Chapter 11.
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A federal bankruptcy judge has approved the liquidation plan of B456 Systems Inc. which consists of the assets of battery maker A123 Systems Inc. that remain in Chapter 11.
B456, which filed for protection from creditors last October, expects to exit bankruptcy within four weeks.
The deal was cleared after Johnson Controls Inc. agreed to pay $200,000 to the bankruptcy estate to settle claims related to it efforts last year to buy the battery maker's assets.
Under the reorganization plan, "Old A123's" unsecured general creditors will recover between one-third and two-thirds of what they are owed. Unsecured senior noteholders are to be paid in full.
B456 reached a separate deal last month with bankrupt hybrid vehicle maker Fisker Automotive Inc., which agreed to reduce its $140 million claim to $15 million.
In January, China's Wanxiang Group Co. acquired most of A123's assets for $257 million deal, including its automotive unit, which supplies lithium-ion batteries for electric and hybrid vehicles. Wanxiang renamed the ongoing business A123 Systems LLC. Navitas Systems LLC bought A123's government business for $2 million.
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