Chinese company wins bid for bankrupt battery maker
NEW YORK — Bankrupt battery maker A123 Systems Inc. on Sunday said it will sell most of its assets to the U.S. arm of Chinese auto parts conglomerate Wanxiang Group Corp. for $256.6 million.
Wanxiang America Corp. won an auction conducted under the supervision of the U.S. Bankruptcy Court for the District of Delaware.
A123's government business will be sold separately, for $2.25 million, to Navitas Systems of Woodridge, Ill.
A hearing seeking the necessary court approval of the sale is scheduled for Tuesday. The deal also must be okayed by the Committee for Foreign Investment in the United States, a federal inter-agency committee that reviews sales of U.S. companies to foreign owners.
A123, which makes lithium ion batteries for electric cars, grid storage and commercial and military applications, was awarded a $249 million grant from the Department of Energy in August 2009 to help it build U.S. factories. About $130 million of that grant was delivered before the companyfiled for bankruptcy.
Despite opening several plants and developing highly touted new technology, the company never posted a profit.
The company sought bankruptcy protection in October, and said it would sell its automotive unit to Milwaukee-based auto parts maker Johnson Controls Inc. for $125 million.
Wanxiang challenged Johnson Controls' role as the primary bidder, and stepped in to provide bankruptcy financing when the U.S. company declined to do so. In a statement on Sunday, Johnson Controls said it officially withdrew from the auction when it declined to match Wanxiang's bid.
The Justice Department has said A123 needs the government's consent to sell its assets, maintaining that any sale must protect the government's interests because of the 2009 grant.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Clinton: Women ‘expect’ extremism from terrorists, not GOP candidates
- People who knew Virginia TV station shooter Flanagan recall his quick temper
- Obama opens climate change tour
- Biden, Warren meeting intensifies speculation on presidential candidacy
- Prosecutor in Casey Anthony trial says he didn’t use Ashley Madison site to cheat
- Virginia reporter, cameraman killed on air; gunman also dies
- Compatibility of 1st-responder radios in doubt
- Planned Parenthood alleges ‘smear’ campaign in letter to top lawmakers
- 13 states spared EPA regulation of waterways
- Ex-crime lab chief: Illegal’s fatal shot in San Francisco likely accidental
- Bison gores worker on California’s Catalina Island