Bankrupt US electric car battery-maker A123 Systems is set to receive $50m worth of financing from China’s Wangxiang Group.
The Chinese company has received final approval by a Delaware judge. A123 sought bankruptcy protection last month, after it receiving more than $130m of a $249m Department of Energy grant.
Global conglomerate Johnson Controls offered $125m for the company’s assets, which Wangxiang and rumoured, Siemens andJapan’s NEC, are also in the running for. Bids are due on 4 December, 2012.
In August 2008 A123 went public, which proved successful during the boom in sentiment towards cleantech and ran parallel with the company’s growth.
It did well to ride the coat tails of the cleantech surge, but 2010 saw a change in fortunes and it entered into a hostile time with its share price dropping drastically.
In August 2010, the group released its third quarter results, showing guidance revenue below analyst estimates.
From then A123’s shares continued to decrease and in July 2012 suggestions circulated that it would be the next cleantech business to go under, after its shares dropped 12 per cent in one morning.
The team suffered a further blow after a board member, CEO of Qualcomm Paul Jacobs, stepped down.
In March 2012, A123 was forced to instigate a $55m replacement programme for defective battery packs and modules produced at the company’s manufacturing facility in Michigan.
In June it issued a warning that it had ‘substantial doubt about the company’s ability to continue as a going concern’ and was seeking investment.
Copyright © 2012 NewNet
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