A123 Systems,
Inc.(NASDAQ:AONE) has announced that the US Bankruptcy Court for District of
Delaware has approved its request for particular ‘first day’ order that aid in
supporting its business.
A123 Systems is a
developer and maker of advanced Nanophosphate lithium iron phosphate systems
and batteries that are used for transportation, commercial applications and
electric grid. A123 influences breakthrough technology, expert systems
integration and high-quality manufacturing. The company’s proprietary Nanophosphate
lithium ion phosphate technology is built on novel nanoscale materials that are
developed at Massachusetts Institute of Technology.
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The court has approved
A123’s request to use $15.5 million out of its $72.5 million DIP
(Debtor-in-Possession) financing from Johnson Controls in order to support the
operations of the company throughout the transaction process. A court hearing
for final grant of the DIP has been slated for 30th October, 2012. The
company has also received grant to continue paying salaries, benefits, employee
wages and other employee obligations.
As mentioned earlier,
A123 had entered an asset purchase agreement with Johnson Controls. The latter
expects to gain access to automotive business assets of A123. A123 also keeps
on engaging in active discussions related to strategic substitutes for its
commercial, grid and other operations. It has received a number of indications
of interest for these businesses. To help the transaction process, A123 and all
of its subsidiaries in the US have filed voluntary petitions for reorganization
under Chapter 11 of the US Bankruptcy Code. The subsidiaries of the company
that are located outside the US were not included in the filings.
Additionally, including
the terms of the updated DIP agreement of the company with Johnson Controls is
expected to be filed soon. It is available on the website of A123. For
accessing court documents and other information, one can view Logan and
Company’s website.
Shares AONE slumped
about 50% during the past week after bouncing back about 150% from its all time
low of $0.05.
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