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  (Source: bloomberg.com)
Congress isn't too sure about the outcome

A123 Systems finally has a new owner after its auction this past weekend, but Congress isn't too happy about the outcome.

Chinese firm Wanxiang Group won the auction for A123 Systems on Saturday for about $260 million. This has concerned certain members of Congress, who said that A123's contracts with the U.S. Department of Defense are at stake.

"I am very concerned by Wanxiang's acquisition of A123," said Rep. Bill Huizenga (R-Zeeland). "A123 maintains several contracts with the Department of Defense and given the thin line between Wanxiang and the Chinese Government, I am concerned about the Government of China having access to sensitive technologies being used by our military forces."

However, Wanxiang doesn't have full access to A123's technology. Part of A123 was also sold to Illinois-based Navitas Systems LLC, which will hold the DOD contracts for $2.2 million.

Back in mid-October, A123 Systems officially filed for bankruptcy and agreed to sell its automotive business assets to Johnson Controls -- a company that optimizes energy efficiencies in car batteries, buildings and electronics.

Before that, A123 was missing its loan payments. It had received $249.1 million in grants from the U.S. government in 2009 to develop green, electric car batteries. It was discovered that the U.S. government gave A123 a $1 million grant the day it filed for bankruptcy.

A123 Systems suffered a huge kick earlier this year when it announced a $55 million battery replacement program for Fisker Automotive's Karma. The vehicle had issues with the batteries' hose clamps. 

A123 Systems joins a list of other green companies that filed for bankruptcy after receiving government loans and grants. Back in September 2011, solar panel company Solyndra filed for bankruptcy after receiving a $535 million loan from the U.S. Department of Energy (DOE). In November, Beacon Power (maker of flywheels for grid efficiency) filed after receiving a $43 million loan guarantee from DOE in 2010. 
 
In January 2012, EV battery maker Ener1 filed for bankruptcy after its subsidiary, EnerDel, won a $118.5 million grant from DOE in 2009. 

The U.S. Bankruptcy Court in Delaware will hold a hearing on the result of the A123 Systems auction on Tuesday, December 11.

Source: The Detroit News



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RE: Figures...
By BZDTemp on 12/10/2012 1:43:34 PM , Rating: -1
Please take your one side political BS and go away.

Putting money in green companies is a way of trying to move the country forward and that means sometimes betting on the wrong horse.


RE: Figures...
By mdogs444 on 12/10/2012 2:19:45 PM , Rating: 2
quote:
Please take your one side political BS and go away.

quote:
to move the country forward


This coming from someone who just recited the Obama campaign slogan?

Give me a break.


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