Washington — The Obama administration approved the sale of most of bankrupt battery maker A123 Systems' assets to Chinese firm Wanxiang Group Corp.
The company's U.S. subsidiary, Chicago-based Wanxiang America, said it has received approval from the Committee on Foreign Investment in the United States to complete its acquisition of substantially all of the non-government business assets of A123 Systems, Inc.
"We're pleased the government has completed its review and provided us with the go-ahead to finalize this transaction," said Pin Ni, president of Wanxiang America. "The future is bright for A123. It is a company with exceptional talent and potential, and Wanxiang America is committed to its long-term success and the continuance of its U.S. operations. Wanxiang America looks forward to closing the transaction and to continuing to foster the technologies A123 has worked so hard to develop."
In December, Wanxiang won a bankruptcy court auction to acquire most of A123 for $256.6 million, including its grid and commercial business assets and its U.S. facilities in Michigan, Massachusetts and Missouri.
A123 had vowed to create 3,000 jobs by the end of 2012, but only has 1,300. It won $249.1 million in grants from the Obama administration in 2009 to build battery plants in Romulus and Livonia, but has only spent $132 million. It also received more than $125 million in tax credits and funding from the state of Michigan.
Navitas Systems, a Woodridge, Ill.-based company, has agreed to buy A123's Ann Arbor-based government business, including all U.S. military contracts for $2.25 million.
President Barack Obama hailed A123 and even invited the company's CEO to the Rose Garden in April 2010.
"This is what happens when we place our bets on American workers and American businesses. And we're going to continue working to help them manufacture more success stories like these across all sectors of our economy," Obama said.
A123 filed for bankruptcy in October and initially sought approval to sell the bulk of itself to Johnson Controls Inc. in less than six weeks.
A123 has 625 employees at plants in Romulus and Livonia and an Ann Arbor office, along with 348 temporary workers in the state.
The Waltham, Mass., startup — which has lost $900 million since 2007 — received $50 million in debtor in possession financing from Wanxiang.
In November, Michigan's two senators and 11 House members raised concerns that the acquisition of bankrupt battery maker A123 by a Chinese company may pose a "threat to U.S. national security."
In a letter to Treasury Secretary Tim Geithner — who chairs the Comm
From The Detroit News:
http://www.detroitnews.com/article/20130129/AUTO01/301290398#ixzz2JOPplj7Q
