Photo: A123 Systems
Battery manufacturer A123 Systems has recently announced that it may run out of money soon, and that bankruptcy may be be the only solution, following a period of financial uncertainty.
"The company may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code," A123 officials said. "No assurance can be given that the company will be able to avoid restructuring, reorganization, or a bankruptcy filing."
They received a $249.1-million federal grant, back in 2009, to build its factory, yet has been struggling ever since having to deal with the cost of the Fisker battery recall. In August, they announced that a Chinese company, Wanxiang Group Corp. were interested in purchasing an 80% stake.
They received a $249.1-million federal grant, back in 2009, to build its factory, yet has been struggling ever since having to deal with the cost of the Fisker battery recall. In August, they announced that a Chinese company, Wanxiang Group Corp. were interested in purchasing an 80% stake.
The deal would have brough $465-million into the company, yet no word on the deal has been heard since. If A123 does go under, it will only follow solar-panel manufacturer, Solyndra LLC, which went bankrupt in 2011, two years after receiving a $535-million loan guarantee from the US Energy Department, and after 14 straight quarterly losses, A123’s days may be numbered.
Story via autonews.com
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