Judge weighs bid procedures in A123 bankruptcy

AP News
Posted: Nov 08, 2012 10:26 AM

WILMINGTON, Del. (AP) — A Delaware bankruptcy judge has resumed a hearing on whether to approve bid procedures for the sale of battery maker A123 Systems' automotive assets.

A123, which has received more than $130 million in Department of Energy grants, wants the judge to approve a lead bid of $125 million from Milwaukee-based auto-parts maker Johnson Controls Inc.

Chinese auto-parts maker Wanxiang Group also wants to buy A123's assets but would need regulatory approval.

In response to concerns from creditors and the judge about bid protection measures for JCI, A123 has reduced the proposed amount that JCI would receive if it is outbid from $7.75 million to $5.5. million.

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A123 and JCI also agreed to extend the bid deadline and auction date from mid-November to early December, but Wangxiang wants even more time.