Former A123 Systems: Liquidation plan effective date occurred June 28

By Jim Witters

Wilmington, Del., July 1 - The plan of liquidation of B456 Systems, Inc., formerly A123 Systems, Inc., became effective on June 28, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court confirmed the Chapter 11 plan on May 20.

The debtor completed the sale of substantially all of its non-government business assets to A123 Systems LLC, a newly formed, wholly owned subsidiary of Wanxiang America Corp., on Jan. 29.

The debtor also completed the sale of its government-related assets to Navitas Systems LLC.

Creditor treatment

Under the plan, treatment of creditors includes:

• Holders of allowed administrative claims, fee claims and priority tax claims will be paid in full;

• Holders of allowed remaining secured claims, priority non-tax claims and convenience claims - which are claims of $10,000 or less or an amount greater than $10,000 but reduced to $10,000 - will be paid in full;

• Holders of allowed general unsecured claims, senior notes claims and subordinated notes claims will receive a share of the available cash in the liquidating trust;

• If any cash remains, holders of subordinated other claims, subordinated stock claims and A123 interests will receive a share of the available cash;

• A123 Systems common stock will be canceled; and

• Holders of subsidiary interests will receive no distributions.

Based in Waltham, Mass., A123 designs, develops, manufactures and sells rechargeable lithium-ion batteries and battery systems. The company filed for bankruptcy on Oct. 16, 2012 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 12-12859.

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