Johnson Controls is appealing the court’s decision to give Wanxiang Group approval to buy the majority of A123 Systems’ assets.
On December 11th, U.S. Bankruptcy Judge Kevin Carey approved the sale of A123 assets to Wanxiang saying that “the auction was robust, the price is adequate.” Still, the deal was questioned and criticized by several Republican lawmakers, fearing that the technology will get into foreign hands. The auction took place on December 6th, and was held behind closed doors in the Chicago law offices of Latham & Watkins LLP. The bidders were Wanxiang, Siemens AG of Germany, Johnson Controls and Tokyo-based NEC Corp.
“We appreciated the opportunity to serve as stalking horse, which resulted in significant value to the estate, creditors and employees,” Alex Molinaroli, president of Johnson Controls Power Solutions, said today in a statement.
Johnson Controls said it is appealing the order trying to obtain the breakup fee and expense reimbursement previously approved by the court. But the Wanxiang deal, although approved by the court, still has to pass the review made by the Committee on Foreign Investment in the U.S. Wanxinang paid for the A123 assets about $256.6 million.