Bankrupt Contractor Seeks to Reject $147 Million US Defense Claim

Alachua Government Services Inc. is moving to disallow or reduce a $146.8 million claim filed by the US Department of Defense in the biologics developer’s bankruptcy, alleging the government breached four contracts.

The DOD’s claims rely on “inapplicable clauses” of federal regulations to interpret the terms of the agreements, the contractor said in a Tuesday filing in the US Bankruptcy Court for the District of Delaware.

The agency’s claims relate to “priority access rights” and unfulfilled work expenses, among other matters.

“The Government seeks to recover speculative, unproven damages untethered from the governing agreements or controlling law, and therefore cannot ...