A123 Systems receives bankruptcy court approval of stalking horse bidding procedures
9 November 2012
The United States Bankruptcy Court for the District of Delaware has granted A123 Systems approval of the bidding procedures and stalking horse bid protections in connection with the previously announced stalking horse asset purchase agreement, under which Johnson Controls intends to acquire A123’s automotive business assets in a court-supervised process under Section 363 of the U.S. Bankruptcy Code. (Earlier post.)
In addition to the stalking horse asset purchase agreement with Johnson Controls, A123 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.
This is an important milestone in our reorganization process and we are pleased to be making progress with the bidding process. A123 and its advisors are confident that the court-supervised transaction process provides a level and fair playing field for all participants. We are encouraged by the continued interest in A123’s assets from Johnson Controls, which has stated an interest in expanding its bid to acquire A123’s government business. We are also encouraged by the interest in A123’s assets from Wanxiang Group Corporation and multiple additional parties.We are committed to acting in the best interests of A123, its employees and its other stakeholders and look forward to engaging in a robust auction process.—Dave Vieau, Chief Executive Officer of A123
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