A123 wins bankruptcy court approval of asset sale

AP News

12/11/2012 5:26:47 PM - AP News

WILMINGTON, Del. (AP) — A Delaware bankruptcy judge is approving the sale of most assets of failed battery maker A123 Systems Inc. to the U.S. arm of Chinese auto parts conglomerate Wanxiang Group Corp. for nearly $257 million.

The deal is still subject to approval by the Committee for Foreign Investment in the United States, a federal interagency committee that reviews sales of U.S. companies to foreign owners.

Waltham, Mass.-based A123, which makes lithium ion batteries for electric cars, grid storage and commercial and military applications, sought bankruptcy protection in October, three years after being awarded a $249 million Department of Energy grant.

Wanxiang's winning bid came after Milwaukee-based auto parts maker Johnson Controls Inc. made an offer of $125 million for A123's automotive battery unit.