U.S. Gov Gave A123 Systems $1M Grant the Day It Filed for Bankruptcy
November 19, 2012 10:05 AM
comment(s) - last by
Republican Senators want to know why the Energy Department continues to fund failing companies
A123 Systems is the provider for the battery packs used in several electric and hybrid vehicles on the U.S. market today, including the Fisker Karma. A123 produces lithium-ion batteries and was the recipient of multiple federal grants from the U.S. government.
A123 Systems filed for
Chapter 11 bankruptcy
protection on October 16 after a deal with a Chinese auto parts company that would have rescued it collapsed.
The same day the company filed for bankruptcy protection, it received a payment of $946,830 from the U.S. government as a part of its $249 million Department of Energy grant for developing clean energy technology.
The grant has an outstanding balance of $115.8 million, and A123 is still eligible for the remainder of its grant funds if it decides to update or expand its manufacturing capacity.
Republican Senators John Thune and Chuck Grassley have been vocal in opposing any federal grant money being giving to A123 and have pressed the Department of Energy to explain why grant money has been continually given to the battery maker even as it has faltered and filed for bankruptcy protection.
A spokesman for the Energy Department, Bill Gibbons, said, "The Energy Department takes its responsibility to be good stewards of the taxpayers' money very seriously."
This article is over a month old, voting and posting comments is disabled
11/20/2012 7:28:25 AM
This company is filing a RESTRUCTURING bankruptcy to hold it over. A LOT of American companies get grants, take out loans, etc, until their research can be sold or turned into profit. So many are operating "in the red" right now it's ridiculous. GM has a contract that will bear fruit with A123 for batteries in 2014, and as such this isn't even news.
"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive
Official: A123 Systems Files for Bankruptcy
October 16, 2012, 4:44 PM
Ford Replaces Human Test Drivers with Robots for New Trucks
June 17, 2013, 10:03 AM
Bosch Selling $3,000 Wireless EV Charging System
June 14, 2013, 2:51 PM
GM CEO Announces Plans to Offer 4G Internet in Most 2015 Model Year Vehicles
June 14, 2013, 8:30 AM
New Jersey Bill Would Allow Cops to Search Your Cell Phone Messages, Calls After Crash
June 12, 2013, 4:30 PM
Ford Won't Upgrade New Focus Electric, Has Only Sold 1,400 Since '11 Launch
June 12, 2013, 3:54 PM
Washington Tries to Spark Interest in Electric Vehicles with New Web Tool
June 12, 2013, 8:53 AM
Most Popular Articles
Microsoft Xbox One: More Expensive, More DRM, and Slower Than PS4
June 11, 2013, 11:07 AM
GigaHertz Wars 2.0? AMD Releases World's First 5.0 GHz FX Processor
June 11, 2013, 3:16 PM
Xbox Chief: If You Can't Get Online, Don't Buy an Xbox One
June 12, 2013, 9:57 AM
Source: Don't Worry, NSA Spies on "99 Percent" of Americans' Locations, Call Records
June 14, 2013, 3:57 PM
Former Palm CEO: Selling Palm to HP was a Waste
June 12, 2013, 10:19 AM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information