A123 Systems (AONE) files for bankruptcy

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Boston.com


TECHNOLOGY
A123 Systems files for bankruptcy
E-mail | Print | Comments (34) 10/16/2012 11:30 AM

By Erin Ailworth and Chris Reidy, Globe Staff

A123 Systems Inc., a Waltham-based maker of lithium-ion batteries, filed for Chapter 11 bankruptcy protection in federal court in Delaware Tuesday morning, saying in court filings that it has agreed to sell such automotive business assets as its facilities in Michigan.

In a recent regulatory filing, the company said that a default on some of its debt is likely, and it warned that it might be heading for bankruptcy protection.

A123 could not be immediately reached for comment.

A123 bet heavily that its batteries would be ideal for helping to power electric and hybrid vehicles. The company has struggled in the last year, with layoffs and a recall of some of its batteries.

Several months ago, A123 looked as if it might be rescued by an investment of up to $450 million by Chinese auto-parts maker Wanxiang Group. Wanxiang could not immediately be reached.

In 2009, A123 held an initial public stock offering a short time later, raising about $380 million with its initial stock offering.

Also in 2009, A123 received a $249.1 million grant from the US Department of Energy to build battery manufacturing operations in Michigan.

dsp

Cool. Killing oB's debate tonight. Rommey should use it to attack.

jamesmith

Does anyone have its Chapter 11 document?