A123 Systems was saved from bankruptcy by Johnson Controls, which will buy the company’s auto business for $125 million.
A123 Systems said it was forced to seek bankruptcy protection from its creditors as it was in the impossibility to make the interest payment at the beginning of the week of tens of millions of dollars, part of its debt. But a short while after the filling energy technology company Johnson Controls announced it is willing to purchase the company’s battery technology and manufacturing plants, offering $125 million. This deal will allow A123 to continue fulfilling contracts for its products, also helped by a $72.5 million financing offered by Johnson Controls.
“The company has filed a number of customary motions seeking court authorization to continue to support its business operations during the transaction process, including the continued payment of employee wages, salaries and health benefits without interruption,” A123 said in a statement.
In the Delaware filling, A123 Systems listed debts of $376 million and assets of $459.8 million. In 2009 A123 was given a $249.1 million grant from the government to build a US factory, but the recall of batteries for Fisker, made the company unable to pay the debt.