- Fisker Automotive photo.
Fisker battery maker A123 Systems, Inc. has filed for Chapter 11 bankruptcy protection in Wilmington as it agreed to sell two plants to Johnson Controls, Inc.
Johnson Controls, plans to acquire A123’s automotive business assets, including all of its automotive technology, products and customer contracts and its facilities in Livonia and Romulus, Mich.
Johnson Controls produces batteries at a plant in Middletown, Del.
The agreement also includes provisions through which Johnson Controls intends to license baack to A123 certain technology for its grid, commercial and government businesses.
A123 also continues to engage in active discussions regarding strategic alternatives for its grid, commercial, government and other operations, and has received several indications of interest for these businesses, according to a release.
A123’s non-U.S. subsidiaries were not included in the filing. This action is expected to allow A123 to provide for an orderly sale of its automotive business assets and all other assets and business units under Section 363 of the Bankruptcy Code and help maximize the value of its assets for its stakeholders, the release noted.
In conjuction with the proposed asset purchase agreement, A123 has received a commitment from Johnson Controls for $72.5 million in debtor in possession financing to support A123’s continued operations during the pendency of the sale process.
The filing is expected to become a presidential campaign issue amid criticism of the Obama administrations handling of green energy programs.
A Fisker plan to build a mid-sized automobile at the former GM plant near Wilmington is currently on hold, due to a federal Energy Department decision to withhold proceeds on a loan. Fisker has been raising capital and its new CEO indicated a decision on the mid-sized Fisker Atlantic will be made after the November elections.
