Mexican Media Brands
A123 Files for Bankruptcy Protection
A123 Systems Inc., the Waltham, Mass.-based maker of lithium-ion batteries for electric vehicles, filed for bankruptcy protection today.
Share
A123 Systems Inc., the Waltham, Mass.-based maker of lithium-ion batteries for electric vehicles, filed for bankruptcy protection today.
The company missed $147 million in bond payments due on Monday and warned it might not have enough cash to fund operations. The company told the U.S. Securities and Exchange Commission that it is exploring a "broad set of strategic alternatives" to resolve its liquidity problem.
The bankruptcy comes two months after China's Wanxiang Group Corp. agreed to invest as much as $465 million to buy 80% of the American company, including an immediate $25 million bridge loan.
A123 has posted 14 consecutive quarterly losses. This year the company has been hurt by warranty expenses, the cost of recalling defective batteries and relatively slow sales of electric vehicles.
RELATED CONTENT
-
On Automotive: An All Electric Edition
A look at electric vehicle-related developments, from new products to recycling old batteries.
-
Multiple Choices for Light, High-Performance Chassis
How carbon fiber is utilized is as different as the vehicles on which it is used. From full carbon tubs to partial panels to welded steel tube sandwich structures, the only limitation is imagination.
-
On Zeekr, the Price of EVs, and Lighting Design
About Zeekr, failure, the price of EVs, lighting design, and the exceedingly attractive Karma
